DSM delivers strong result improvement in Q3
- Q3 operating profit from continuing operations EUR 139 million, more than double Q2 2009 (EUR 58 million)
- Strong Life Sciences performance due to robust Nutrition business
- Materials Sciences continued strong recovery
- Cost savings and efficiency improvements on track to achieve EUR 150 – 200 million on yearly basis by 2010
- Cash flow from operating activities again very strong (Q3 EUR 517 million)
- Outlook for the rest of the year remains uncertain; Q4 operating profit currently expected to be lower than Q3, but above Q4 last year
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.”