DSM reports a strong year

Published: March 1, 2012 6:00 am ET

Related to this story

Topics Materials, Suppliers, NPE 2012

HEERLEN, NETHERLANDS (March 1, 1 p.m. ET) — Royal DSM NV, the Dutch healthcare to materials group, expects a strong performance from its polymer intermediates business in the coming year, although it warned the division’s pre-tax earnings would be lower than the “exceptional result in 2011.”

Announcing corporate sales of 9 billion euros ($11.99 billion) in 2011, up 11 percent, Feike Sijbesma, DSM’s chief executive and chairman, said it had been another strong year for the business “despite the challenges of the global economy, adverse currency movements and high raw material costs.”

Noting the record-breaking trading of its polymer intermediates business Sijbesma said another strong performance was expected at a level above the historical average, but earnings before interest, tax, depreciation and amortization (EBITDA) will be “clearly lower than the exceptional result in 2011.”

“In 2012 three planned turnarounds in caprolactam, one in the first quarter of 2012 and two more in the third quarter, will also impact the results,” he added.

DSM’s total EBITDA rose 12 percent to 1.3 billion euros ($1.7 bilion). The company also announced it proposed to increase its dividend per share by 7.4 percent.

Sijbesma said the company’s polymer intermediate operation had delivered the highest profitability in its history on the back of a 70 percent increase in total sales to 380 million euros ($506.6 million).

Helped by higher prices full year organic sales growth in the polymer business came in at 32 percent, compared with what Sijbesma called “an already very strong performance in the previous year.”

DSM’s performance materials arm saw full year organic sales growth of 9 percent, with total sales of 293 million euros ($390.6 million), up 3.5 percent.

Looking ahead, Sijbesma said the group was conscious that risks to the global economy remained and weakness in Europe and some of its key end markets, notably building and construction, still persisted.

“However, we believe that our balanced, relatively resilient portfolio in health, nutrition and materials, our broad geographic spread with a significant presence in high growth economies, together with our strong balance sheet, leave us well placed to achieve our ambitious 2013 targets,” he added.

DSM Engineering Plastics is in the process of moving its headquarters to Singapore.


Comments

DSM reports a strong year

Published: March 1, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Best Places To Work: No. 3, Sun Plastech Inc.

March 3, 2015 2:25 pm ET

Sun Plastech Inc., No. 3 on Plastics News' Best Places to Work ranking, offers so many interesting benefits and perks, it's hard to know where to...    More

Image

Best Places To Work: No. 4, Ayanna Plastics & Engineering Inc.

March 3, 2015 2:39 pm ET

Ayanna Plastics & Engineering Inc., a Clearwater, Fla., injection molder and toolmaker, ranks No. 4 on the Plastics News Best Places to Work list....    More

Image

Bayer expands with acquisition of Germany's Thermoplast Composite

March 3, 2015 10:59 am ET

Bayer AG's Bayer MaterialScience LLC has bought composite materials specialist Thermoplast Composite GmbH based near Nuremberg, Germany.    More

Image

Bayer MaterialScience spinoff on schedule

March 3, 2015 10:14 am ET

The head of Bayer AG said the group still must decide the details to spin off its Bayer MaterialScience plastics group this year.    More

Image

Lower oil prices will continue to impact PE, PP resin pricing

March 2, 2015 2:05 pm ET

Lower oil prices will continue to affect North American markets for polyethylene and polypropylene resin in the months ahead.    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events