07 August 2012 07:11 [Source: ICIS news]
SINGAPORE (ICIS)--DSM will implement a “profit improvement program” over the next 18 months that is expected to shave the firm’s global headcount by about 1,000 positions, the Dutch specialty chemicals maker said on Tuesday.
The program will focus on cost reductions and efficiency improvements, as well as sales growth and pricing, amid ongoing uncertainty about the global economy, the company said in a statement.
One-off cash costs for the program are expected to total around €125m ($154m), half of which has been recognized as an exceptional item in the second quarter, the company said.
The remainder of the costs is expected to be recognized as an exceptional item in the second half of this year, DSM said.
By 2014, the program is expected to deliver annual earnings before interest, tax, depreciation and amortisation (EBITDA) benefits of €150m ($185m) for the company, in addition to the restructuring initiatives at its resins business that will deliver yearly savings of €25m-30m by 2013, DSM said.
($1 = €0.81)
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