Ludwigshafen, Germany - Third-quarter results stabilized at BASF, but profits for the whole of 2009 were expected to fall, the world's biggest chemical company said Thursday.

Third quarter earnings fell to 237 million euros (348 million dollars) from 758 million euros in the same period a year ago, BASF said in a statement.

Third-quarter sales were 12.8 billion euros, an increase of 2 per cent compared with the second quarter but down 19 per cent from the same period of 2008.

BASF shares slumped 2.97 per cent to 35.90 euros after the figures were announced.

"In this unprecedented downturn, we have demonstrated decisive action in the form of strict crisis management, tailoring production to demand, idling plants and introducing flexible working time arrangements," said BASF chairman Juergen Hambrecht.

"In the past three months our business has stabilized at a low level. Positive impulses are coming from Asia, especially from China, and from parts of South America. Europe and North America remain weak," he added.

BASF said it expected final quarter sales to be the same as last year. Final quarter profit was expected to be above that of last year, but below this year's third quarter figure.

"Overall, there is much to suggest that the worst is behind us," Hambrecht said. After a steep plunge, we are now climbing gradually out of the trough. The recovery will be slow and uneven." (dpa)