THE world's leading chemical company BASF shrugged off "persistently difficult" trading conditions to take profits to £515m, up 1.2 per cent on last year.

Despite a fall in sales, the group said a weakening in the value of the US dollar had underpinned the year.

Dr Jurgen Hambrecht, BASF chairman, said: "You can rely on BASF's strength, even when we have to operate in an economic climate that offers very few encouraging signs."

But the company said major efforts were needed to match last year's results.

Dr Hambrecht said: "High unemployment rates, which continue to rise in the eurozone and in the United States, suggest that growth triggered by private consumption is unlikely.

"The signals from our customers also fail to show any signs of an upturn in the short term."

BASF operates a plant at Seal Sands, Teesside, and another in Cramlington, Northumberland.