23 September 2010 08:41 [Source: ICIS news]
SINGAPORE (ICIS)--Dutch producer DSM said on Thursday it is on track to achieve business targets for 2010 and has set an earnings target of €1.4-1.6bn ($1.87-2.1bn) by 2013 after “largely completing” its transformation into a life sciences and material sciences company.
Earnings before interest, taxes, depreciation and amortization (EBITDA) were set to rise to as much as €1.6bn by 2013, the Netherlands-based company said in a statement.
DSM was also planning to “more than double” its ?xml:namespace>
High-growth economies currently contribute around 32% towards the company’s total sales and was expected to contribute over 70% of DSM's total growth in the period to 2015, the company said.
The firm’s organic sales growth of 5-7% would also be enhanced with new acquisitions and partnerships, the firm added.
"With our transformation into a life sciences and materials sciences company largely completed, our focus now is on growth," said CEO Feike Sijbesma.
The firm’s new business targets reflect a new strategy towards four growth drivers – high growth economies, innovation, sustainability and acquisitions & partnerships – which would result in growth across all businesses and regions, DSM said.
As part of the new plan, the company said that it was looking to open new innovation centres in
DSM was also planning to relocate the headquarters of business groups DSM Anti-Infectives, DSM Engineering Plastics and DSM Fibre Intermediates to
The company was also planning to move DSM Biomedical’s headquarters to the
In its plan for the firm’s performance material division, DSM said that it would focus on growth via sustainable and innovative solutions, “driven by customer and end-user demands for stronger and lighter materials and environmentally friendly coatings”.
Meanwhile, DSM’s second production line for polymer intermediates in
For its Pharma cluster, the company said it remained convinced that growth and profit in its Anti-Infectives business could be accelerated via an alliance or partnership in
The firm said that it would also pursue a partnership strategy for its Pharmaceutical Products business – with a focus on
“DSM aspires to restore the cluster's profitability back towards an EBITDA-margin of 15-20% range by 2015,” it added.
In its outlook, DSM said that business developments in July and August were in line with earlier expectations, without elaborating on details.
DSM earlier in August announced that its second-quarter net profit surged to €149m from just $10m in the previous corresponding period, on the back of a 28% jump in sales.
“Based on the current positive business environment, 2010 is expected to be a strong year for DSM," the company said.
($1 = €0.75)
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