23 February 2011 07:12 [Source: ICIS news]
SINGAPORE (ICIS)--DSM swung to a net profit of €149m ($204m) in the fourth quarter of 2010 from a loss of €60m in the same period a year earlier, as sales from continuing operations jumped 18%, the Dutch company said on Wednesday.
Sales for the period stood at €2.08bn, while earnings before interest and taxes (EBIT) climbed 17% to €170m, mostly due to the strong performance of its materials sciences businesses, it said in a statement.
Overall net sales for the quarter were up 9% to €2.20bn, while total operating profit surged 27% to €180m, it said.
Its performance materials segment had a 30% increase in operating profit to €30m during the quarter, while earnings from polymer intermediates surged fivefold to €55m, it said.
Overall, underlying trading conditions remained favourable in the fourth quarter, with continued volume growth and pricing strength, DSM said.
For the full year of 2010, the company posted a 50.4% year-on-year increase in its net profit to €507m, while sales from continuing operations surged 22% to €8.18bn, the company said.
Overall net sales in 2010 rose 15.2% year on year to €9.1bn, while EBIT surged 89% to €838m, it added.
“The materials sciences businesses delivered a significant improvement during the year with a record result for polymer intermediates,” said DSM chairman and CEO Feike Sijbesma in the statement.
Polymer intermediates recorded a 2010 EBIT of €192m from just €6m in the 2009, while operating profit from performance materials last year soared to €179m from €68m in the previous year, it said.
“For most businesses the first half of the year was stronger than the second half, due to downstream restocking and much more favourable currency exchange rates,” DSM said.
In its outlook, DSM said that it expects its end-markets to show continued growth this year, driven by the recovery in global economies.
“Inflation, however, is expected to increase during the year, resulting in higher prices for energy and certain raw materials compared to 2010 as is already seen today. DSM will actively seek to offset these through price increases,” the company said.
($1 = €0.73)
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