Press release

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 €903 million; Q4 down 35% to €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 €100 million under way
  • Solid long-term financial position; dividend maintained at €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.”

Key figures

Q4 2009 Q4 2008 +/- in € million FY 2009 FY 2008 +/-
      Continuing operations:      
2,091 2,226 -6% Net sales 9,297 8,757 6%
241 300 -20% Operating profit before depreciation & amortization (EBITDA) 1,357 1,247 9%
123 190 -35% Operating profit (EBIT) 903 823 10%
155 72 115% Nutrition 447 276 62%
30 19 58% Pharma 89 92 -3%
-37 70   Performance Materials 175 291 -40%
-66 32   Polymer Intermediates 19 105 -82%
44 22 100% Base Chemicals and Materials 260 137 90%
-3 -25   Other activities -87 -78  
      Total DSM:      
2,091 2,226 -6% Net sales 9,297 8,757 6%
123 190 -35% Operating profit (EBIT) 903 823 10%
73 130 -44% Net profit before exceptional items 608 558 9%
-31 -18   Net result from exceptional items -31 -129  
42 112 -62% Net profit 577 429 34%
      Net earnings per ordinary share in €:      
0.43 0.75 -43% before exceptional items, continuing operations 3.64 3.07 19%
0.24 0.64 -63% including exceptional items, total DSM 3.45 2.35 47%

You can find the press release in full, including financial statements, below.

For more information

Lieke de Jong-Tops

Senior Communications Manager
+31 45 578 2420
media.contacts@dsm.com

Dave Huizing

Vice President Investor Relations
+31 45 578 2864
investor.relations@dsm.com

Media Relations

+31 45 578 2420

Investor Relations

+31 45 578 2864

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