DSM reports profitable Q1 despite difficult economic conditions
- Q1 operating profit down to EUR 57 million
- Continuing strong performance from Life Sciences businesses
- Most Materials Sciences businesses severely impacted by downturn
- Continued strong cash performance, EUR 166 million cash from operating activities
- No quantitative outlook provided for 2009 in view of uncertain economic conditions
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.
“Although 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.”