28 April 2009 08:09 [Source: ICIS news]
SINGAPORE (ICIS news)--Dutch producer DSM said on Tuesday its first quarter net profit slumped 92% year-on-year to €13m ($17m) as its materials sciences business took a heavy beating from the global economic downturn.
Sales for the period declined a record 22% to €1.84bn, with operating profit down 76% at €57m.
DSM said almost half of the company’s business was heavily affected, particularly those exposed to the automotive, electrical and electronics, and building and construction industries.
“Although no improvement in demand in end-markets seems to be imminent, we are not at this point in time seeing a further deterioration either. Neverthless, there will be tough times ahead,” DSM chairman Feike Sijbesma said in a statement.
“Actions to reduce costs will continue unabated, and we now expect to over-deliver on our targeted savings of €100m by 2010,” Sijbesma said.
DSM had cut its workforce by almost 100 from end-2008. As of end-March, the company employs 23,395.
The company did not provide a forecast for its financial performance this year given uncertain economic conditions.
($1 = €0.77)
To discuss issues facing the chemical industry go to ICIS connect
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|