BASF, the German chemicals company, is heading for its first dividend cut since the early 1990s as economic turmoil continues to depress manufacturers’ demand for its products and costs mount from its 2008 acquisition of Ciba.

The world’s largest maker of chemicals said third-quarter sales dropped 19 per cent compared with a year ago to €12.8bn ($18.9bn), while net income for the period slumped 69 per cent to €237m.