28 April 2010 07:53 [Source: ICIS news]
MUMBAI (ICIS news)--Dutch producer DSM has more than quadrupled its first quarter operating profit to €196m ($258m) year on year due to a strong performance across segments and cost savings initiatives taken in 2009, it said on Wednesday.
The company recorded an almost 24% year-on-year rise in net sales to €2.09bn, it added in a report.
"Operating profit from our core businesses is not only up very strongly compared to Q1 2009, it has also returned to the level achieved in Q1 2008. This reflects the cost savings initiatives taken last year, which already deliver €200 million on an annualized basis,” said Feike Sijbesma, chairman of the DSM managing board.
The company had benefited from improved business conditions in most geographic areas and end markets, which resulted in a significant improvement in its operating profit, it said.
DSM’s polymer intermediates segment posted a first quarter operating profit of €43m against an operating loss of €30m year in the corresponding period of previous year, reflecting strong demand from ?xml:namespace>
Strong demand from emerging economies and automotive, electronics and textile markets had helped the recovery of the materials sciences businesses, DSM said in its report.
DSM’s nutrition cluster continued to show healthy volume growth at price levels that were comparable to the last quarters of 2009 while the pharma segment faced lower volumes compared to the fourth quarter of 2009, it added.
Looking ahead, DSM was committed to increasing its presence in the
“Whilst uncertainties remain in the medium term economic outlook, the strong Q1 result and continued positive business conditions give us confidence that 2010 will be a good year for DSM," Sjibesma said.
DSM expected sales volumes in the polymer intermediates segment to be lower in the second and third quarters of 2010 due to planned turnarounds, it added in its report.
($1 = €0.76)
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