DSM reports continued strong cash generation as operating profit improves
- Q2 operating profit from continuing operations clearly higher than Q1 2009
- Q2 total operating profit of EUR 79 million, substantially down from last year’s record
- Nutrition business remains robust
- Materials Sciences recovers from first quarter losses
- Cash flow from operating activities once again very strong (EUR 267 million); 44% higher than Q2 2008
- Interim dividend unchanged at EUR 0.40 per ordinary share
- The outlook remains uncertain, although the initial impact of inventory write-downs and customer de-stocking now looks to be largely over
Commenting on the results, Feike Sijbesma, chairman of the DSM Managing Board, said: "Early and aggressive action to reduce costs, a focus on cash, stringent management of working capital and the ongoing resilience of our Life Sciences businesses, have all ensured that DSM is in good shape at the end of the first half of 2009.
"Although there is little sign of improving demand across many end-markets, Q2 earnings were up sharply compared with the first quarter driven by Materials Sciences as inventory write-downs and customer de-stocking have largely run their course.
"DSM is staying the course, even in these challenging times. This is illustrated by the announcement of the disposal of two non-core businesses in July, our ongoing strategic commitment to our customers, innovation and sustainability and our focus on China, where we are reaping the benefits of a favorable market. Our strong balance sheet and robust cash flow leave us well placed to take advantage of future opportunities that will arise."