Dutch DSM Q4 net profit down 75% on lower capro margins

20 February 2013 06:31  [Source: ICIS news]

SINGAPORE (ICIS)--Dutch DSM posted on Wednesday a 75% year-on-year decrease in Q4 net profit in 2012 to €21m ($28m), weighed by lower earnings from its polymer intermediates business on the back of lower caprolactam (capro) margins.

The specialty chemical maker’s sales rose by 2% year on year to €2.27bn in October-December 2012, while earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 17% to €243m, it said in a statement.

Its polymer intermediates business cluster saw sales dip by 18% year on year to €393m in the fourth quarter, with production volumes 11% lower on the back of a plant turnaround in the US.

The cluster’s EBITDA fell by 82.3% year on year to €14m in the fourth quarter, mainly because of lower capro prices and substantially higher benzene prices.

For the full year of 2012, the company’s net profit fell by 65% year on year to €288m, and sales fell by 1% to €9.13bn.

Its full-year EBITDA was down by 16% year on year at €1.11bn.

“In 2013 we will focus on the operational performance and integration of the acquisitions we completed in 2012 with special attention to capturing synergies,” said Feike Sijbesma, CEO and chairman of the DSM managing board.

“We expect strong EBITDA growth in 2013, moving towards €1.4bn,” Sijbesma added.

($1 = €0.75)

By: Nurluqman Suratman

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