UpdateDutch DSM Q1 net profit falls 13% to €145m, sales dip 2%

08 May 2012 10:59  [Source: ICIS news]

(adds further financial detail throughout)

DSM Headquarters, GeleenLONDON (ICIS)--Dutch producer DSM on Tuesday reported a 13% year-on-year decline in its first-quarter net profit to €145m ($188m) as net sales slipped by 2% to €2.29bn.

Its earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter were down by 9.7% to €306m, the group added.

DSM’s Performance Materials business saw its net sales fall slightly, by 0.6%, to €701m in the first quarter, while EBITDA declined by 13% year on year to €79m, following lower volumes.

The group’s Polymer Intermediates segment reported that its first-quarter sales fell 5.9% to €430m, while EBITDA fell by 30% to €69m.

The company said that compared with the same period in 2011, the Polymer Intermediates business was affected by anticipated lower margins and a scheduled major plant turnaround.

Net sales in its Nutrition business during the quarter increased 13% year on year to €900m, as a result of the Martek acquisition and an increase in prices and volumes, particularly in Animal Nutrition and Health. EBITDA rose 11% year on year to €192m, as a result of the higher sales.

DSM’s Pharma segment reported sales up 7.4% year on year to €175m in the first quarter of 2012, while EBITDA grew to €5m from €0 in the same quarter last year because of higher volumes at DSM Pharmaceutical Products and contribution from its Maleic Anhydride and Derivatives business.

“In Life Sciences, Nutrition continued to deliver excellent performance despite the currency headwinds, benefiting from the acquisition of Martek and continued organic growth,” said Feike Sijbesma, CEO and chairman of DSM.

“Materials Sciences delivered an improved performance compared to the previous quarter in Performance Materials and another good result in Polymer Intermediates,” he added.

However, looking ahead, Sijbesma said the company remains “cautiously optimistic for 2012 despite the uncertain macro-economic situation”.

($1 = €0.77)

Additional reporting by Pearl Bantillo

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

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