Press release

DSM reports continued strong cash generation as operating profit improves

Heerlen, NL, 04 Aug 2009 08:15 CEST

  • Q2 operating profit from continuing operations clearly higher than Q1 2009
  • Q2 total operating profit of €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 (€267 million); 44% higher than Q2 2008
  • Interim dividend unchanged at €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."

Key figures

Q2 2009 Q2 2008 +/- in € million H1 2009 H1 2008 +/-
      Continuing operations:      
1,918 2,406 -20% Net sales 3,707 4,709 -21%
167 346 -52% Operating profit before depreciation & amortization (EBITDA) 305 650 -53%
58 242 -76% Operating profit (EBIT) 90 448 -80%
124 109 14% Nutrition 265 188 41%
3 29 -90% Pharma 14 37 -62%
17 70 -76% Performance Materials 0 150 -100%
4 26 -85% Polymer Intermediates -26 66  
-36 43   Base Chemicals and Materials -62 73  
-54 -35   Other activities -101 -66  
      Discontinued operations:      
36 50 -28% Net sales 84 105 -20%
25 37 -32% Operating profit before depreciation & amortization (EBITDA) 54 71 -24%
21 34 -38% Operating profit (EBIT) 46 65 -29%
      Total DSM:      
1,954 2,456 -20% Net sales 3,791 4,814 -21%
79 276 -71% Operating profit (EBIT) 136 513 -73%
30 192 -84% Net profit before exceptional items 55 354 -84%
-20     Net result from exceptional items -32    
10 192 -95% Net profit 23 354 -94%
      Net earnings per ordinary share in €:      
0.09 1.00 -91% before exceptional items, continuing operations 0.11 1.81 -94%
0.05 1.15 -96% including exceptional items, total DSM 0.12 2.10 -94%

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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