UpdateDSM confident of hitting 2013 EBITDA target of €1.4bn-1.6bn

01 November 2011 08:04  [Source: ICIS news]

LONDON (ICIS)--DSM remains confident that the Netherlands-based company is on track to achieve its earnings before interest, tax, depreciation and amortisation (EBITDA) target of €1.4bn-1.6bn ($1.9bn-2.2bn) in 2013, it said on Tuesday.

“Our outlook remains unchanged: 2011 is expected to be a strong year with further progress towards achieving our 2013 targets,” said Feike Sijbesma, CEO and chairman of the DSM managing board.

“However, DSM remains vigilant to possible negative developments in the global economy. [Through the third quarter] we have experienced weakening in the electronics and electrical markets and in the depressed building and construction markets,” he added.

Sijbesma said DSM would not be immune to deterioration in the economic environment, but added that the company had become a more balanced one with a strong presence in high-growth economies, especially China.

Earlier on Tuesday, DSM announced that its third-quarter net profit after exceptional items soared to €171m from €79m in the same period last year, partially helped by strong earnings from its Materials Sciences and Polymer Intermediates clusters.

Its total net sales from continuing operations in the third quarter of 2011 rose to €2.32bn, up by 14% from the same period last year, on the back of strong sales across all its business segments

DSM’s total operating profit from continuing operations in the three months ended 30 September rose by 37% year on year to €231m.

“We are pleased to have delivered continued profitable growth compared to last year across all business clusters. This performance has been achieved despite the significant impact of a very strong Swiss franc and a weak US dollar,” said Sijbesma.

DSM’s Performance Materials cluster reported sales of €711m, up 7% year on year, mainly due to price rises at its engineering plastics and resins businesses.

The group’s Polymer Intermediates segment achieved sales of €473m, a growth of 39% compared with the third quarter of 2010. DSM said that volumes were higher compared with last year as a result of yield improvements in operations in both caprolactam and acrylonitrile (ACN) and a maintenance shutdown in China in the third quarter of 2010.

Sales in the group’s Nutrition business in the third quarter increased by 16% to €868m over the same period last year, due to an organic sales growth of 8%, DSM said.

Its total net profit after exceptional items for the first nine months of 2011 more than doubled to €729m from €358m in the same period last year and its net sales from continuing operations rose by 12% year on year to €6.82bn.

($1 = €0.72)

By: Franco Capaldo
+44 (0)20 8652 3214

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