- Global Q3 operating profit from continuing operations EUR 139 million, more than double Q2 2009 (EUR 58 million)
- Q3 2009 sales in China amounted to USD 334 million as a record-high Q3 , which represents an increase of 16% relative to the comparable period of last year
- China Year-to-date sales amounted to USD 813 million being a decrease of 11% compared to year-to-date previous year.
Most of DSM's businesses experienced a further improvement in demand during Q3, including a strong September. The underlying trend can be described as a mixture of a clear recovery in some end markets (especially China) and some downstream re-stocking in other areas which, however, are still lower, such as automotive. The year-on-year percentage drop in sales volumes in the businesses affected by the economic downturn has returned to single digit.
Strong Life Sciences performance due to robust Nutrition business and Materials Sciences continued strong recovery. The operating profit of DSM's core business, Life Sciences and Materials Sciences, in Q3 2009 (EUR 137 million) was only 10% lower than last year's level, during which period DSM was not yet affected by the downturn. All businesses in Base Chemicals and Materials showed a clear recovery compared to the previous quarter.
Commenting on the results, Feike Sijbesma , chairman of the DSM Managing Board, said: "DSM delivered strongly improved results for Q3 2009, with ongoing resilience in Nutrition and a further improvement in Materials Sciences compared to the previous quarters. Our early action to reduce costs, our focus on cash and our commitment to innovation and China are paying off.
"We are alert that the economic climate remains uncertain and that the path of recovery is likely to prove uneven. However, it seems that the first half of 2009 represented the low point for this recession and we are showing that we are well placed to capitalize as markets improve, which is also reflected in a strong sales volume development.
"Throughout these challenging times, DSM is staying the course. We completed the disposal of two non-core businesses and remain committed to exiting the remaining non-core operations. Our strategic commitment to create a Life Sciences and Materials Sciences company addressing important global trends via a focus on customers, innovation and sustainability is undiminished. Our robust financial strength allows us to capture market opportunities as they arise."
DSM's acceleration of the strategic program Vision 2010 - Building on Strengths, announced in September 2007, focuses on delivering faster growth, higher margins and improved earnings quality from the company's portfolio. The strategy will transform DSM into a Life Sciences and Materials Sciences company capable of sustainable growth fueled by important societal trends. The key drivers - market driven growth and innovation, increased presence in emerging economies and operational excellence - remain at the heart of DSM's strategy. The disposals of DSM Energy and the urea-licensing activities, as part of DSM's accelerated Vision 2010 strategy, were completed on 30 September and 6 October respectively.
The outlook for the rest of the year remains uncertain. However, the Q4 operating profit from continuing operations is currently expected to be lower than in Q3 2009, but above Q4 last year.
