DSM ends 2009 with solid Q4 and very strong cash generation
- Q4 operating profit from continuing operations € 141 million in line with Q3 2009.
- Life Sciences performance reflects robust Nutrition business.
- Materials Sciences recovery remains on track.
- Full year operating profit from continuing operations € 370 million.
- Full year cash flow from operating activities very strong at € 1,276 million.
- Solid financial position − dividend maintained at € 1.20 in cash.
- No quantitative outlook provided for 2010.
Commenting on the results, Feike Sijbesma, Chairman of the DSM Managing Board, said: “In what was undoubtedly one of the most challenging years in DSM’s history, we stayed the course and remained fully committed to our customers, innovation and sustainability. After a difficult first half year, we delivered improved results in the second half of the year as our Materials Sciences businesses started to recover.
“Although our full-year operating profit from continuing operations halved compared to our record performance of 2008, the decline in DSM’s core activities was limited to 26%. A continued robust performance from the Nutrition business and the benefits of our early actions to improve our competitive position contributed to this performance. Our initiatives to reduce costs delivered over € 150 million in savings during the year, whilst our focus on cash resulted in an unprecedented operating cash flow of almost € 1.3 billion in 2009. Our strong financial position leaves us well placed to capitalize on any opportunity that might arise.
“As we have entered an uncertain 2010, DSM will continue its strategic transformation into a Life Sciences and Materials Sciences company. We completed the disposal of two businesses during the year and remain committed to exiting the remaining non-core operations. Whilst recognizing the uneven nature of the current economic recovery, we are cautiously optimistic.”