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)
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