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DSM reports record year despite global economic downturn in Q4

Heerlen, NL, 18 Feb 2009 08:15 CET

  • Full year operating profit up 10% to EUR 903 million; Q4 down 35% to EUR 123 million
  • Continuing strong performance from Life Sciences businesses and DSM Dyneema in Q4
  • Most Materials Sciences businesses severely impacted by downturn since beginning of Q4
  • Focus on cash over profitability generates strong cash flow in Q4; cost saving program of EUR 100 million under way
  • Solid long-term financial position; dividend maintained at EUR 1.20 per share
  • No quantitative outlook provided for 2009 in view of the uncertain economic conditions

Commenting on the results, Feike Sijbesma, chairman of the DSM Managing Board, said: “2008 was a year of stark contrasts, with strong performances across DSM’s businesses in the first nine months of the year being partly offset by the effects of the global economic downturn since the beginning of the fourth quarter. Whilst DSM’s Life Sciences businesses continued to perform well through the fourth quarter, most Materials Sciences businesses have been severely impacted by the sharp drop in demand. We have implemented actions to prioritize the generation of cash and have swiftly taken the necessary steps to reduce costs in the affected businesses. Further such measures will be implemented as required, although we are also conscious of the need to preserve our capabilities for the future, once market conditions improve again. DSM will continue its customer focus as well as its strategic commitment to innovation and sustainability.

Our unique combination of activities together with our healthy financial situation puts us in an excellent position to take advantage of opportunities that will arise from the current economic climate. Although the difficult market conditions in some of our businesses are currently leaving their mark on our results, our strategic direction, fueled by long-term societal trends, is the right one: DSM is staying the course.”

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