FRANKFURT (AP) -- German chemical company BASF SE reported first-quarter net profit fell 68 percent as sales sank because of the recession and said it would cut at least 2,000 jobs this year.

Ludwigshafen-based BASF, the world's largest chemical company by sales, said Thursday that net profit for the January-March period was down to euro375 million ($499 million) from euro1.2 billion in the first quarter of 2008.

Sales fell 23 percent to euro12.2 billion from last year's euro16 billion.

BASF did not provide a specific earnings outlook for the year and said it faces "enormous challenges."

"There is currently no sign of a reversal of this trend, and we do not consider temporary topping of inventories in some regions and industries to be signs of a sustainable turnaround," Chief Executive Juergen Hambrecht said.

The company "will restructure and, where necessary, close or sell plants and sites that cannot ensure the company's long-term competitiveness," a BASF statement said. "The company will cut at least 2,000 positions by the end of 2009."

BASF, which has a global work force of about 97,000, did not specify where the jobs would be cut. It said it experienced lower sales and profits in all regions.

In November, BASF said it would shut a total of 80 plants worldwide and cut production at 100 more.

Earlier this month, BASF said it was reviewing at which German plants it will introduce shorter work hours starting June 1. It already has shuffled German staff to different production sites to keep them working.

BASF said its the agriculture products division had better sales in the first quarter thanks to higher volumes and price increases, as the new growing season got off to a strong start in Europe and North America.

It said chemicals division sales decreased significantly because of lower volumes and prices, but the unit still made a profit.

BASF, which also explores for and refines natural gas and oil products, said its oil and gas segment had higher sales, but its earnings declined due to factors including falling oil prices and lower exploration prices.

The company's plastics division had a loss on "a drastic decline in sales" and costly idle capacity at its polymers division, BASF said.

Despite the mixed picture, investors were cheered by BASF's efforts to counter the crisis. Its shares were up 8.4 percent at euro28.85 in Frankfurt morning trading.