Dutch DSM to cut about 1,000 jobs under profit improvement program

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)

By: Nurluqman Suratman

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly