Falling demand hits BASF profit

BASF is preparing for tough times ahead

The world's largest chemicals firm, BASF, has reduced its profit forecast and says it will cut production because of a "massive" fall in demand.

The firm said it would suspend output at about 80 plants and cut production at 100 more, a move that will affect about 20,000 workers worldwide.

BASF scrapped its target of reaching last year's annual profits, saying it was preparing for "tough times ahead".

The news sent BASF shares down 13% on Frankfurt's stock market.

"In particular, customers in the automotive industry have cancelled orders on short notice," BASF said in a statement.

BASF underlined that its cost-cutting plans would not affect its 4bn-euro ($5.1bn; £3.3bn) acquisition of Swiss specialty chemicals firm Ciba.