DSM reports profitable Q1 despite difficult economic conditions Published: 29 April, 2009
The Netherlands based nutrition, pharmaceutical, chemical and materials company DSM has reported reduced profits from its quarter 1, 2009 activities.
Operating profit for the quarter was down to EUR 57 million, a drop of 76% from the same quarter in 2008.
Commenting on the results, Feike Sijbesma, chairman of the DSM managing board, said: ‘Ongoing strong performances from our Life Sciences businesses and stringent control of costs and working capital allowed DSM as a whole to remain profitable and cash generating throughout the quarter despite the very challenging economic conditions which primarily affected most of Materials Sciences.
‘Athough no improvement in demand in end-markets seems to be imminent, we are not at this point in time seeing a further deterioration either. Nevertheless, there will be tough times ahead. We remain focused on the generation of cash. Actions to reduce costs will continue unabated, and we now expect to over-deliver on our targeted savings of EUR 100 million by 2010.
‘In the meantime, DSM continues its customer focus as well as its strategic commitment to innovation and sustainability. Despite the challenges we face today, DSM will continue its strategic direction, based on long-term societal trends. Our healthy financial position ensures that we will be able to take advantage of opportunities inevitably arising from this recession.’
DSM Nutritional Products is a major supplier of vitamins and carotenoids to the aquaculture industry and their high strength Dyneema based products are being used in aquaculture nets and ropes.