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

PolyOne says new Shanghai center will ease collaboration across segments

April 24, 2014 2:34 pm ET

PolyOne Specialty Engineered Materials is opening an innovation Center in Shanghai's Jinqiao development zone that will serve as its new Asia Pacific ...    More

Biopolymer firms report success with PHA pilot production

April 24, 2014 1:30 pm ET

Biopolymer developer Meridian Inc. and Tate & Lyle plc have reported successful pilot production of Meridian's process to make polyhydroxyalkanoate,...    More

Songwon acquires division of India's SeQuent

April 24, 2014 12:22 pm ET

Songwon Industrial Group of South Korea has signed a deal with SeQuent Scientific Limited, India to acquire SeQuent's specialty chemicals business.    More

Image

Performance Plastics unit helps lead to increase in sales for Dow Chemical

April 24, 2014 9:57 am ET

Dow reported turnover of $14.5 billion April 23, including an adjusted 6 percent increase in sales at its performance plastics operation, which it...    More

Image

Milliken expanding SC plant for additional PP clarifying agent capacity

April 23, 2014 3:42 pm ET

American chemical company Milliken & Co. has announced plans for a major expansion in capacity for its Millad NX8000 clarifying agent for polypropylen...    More

Market Reports

Market Data Book - Rankings & Lists

A one-stop download of Plastic News' exclusive annual lists and processor rankings containing essential data including sales, employees, end markets, materials and more.
EXCLUSIVE EXCEL FEATURE: full mailing address details for available plant locations.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Mold Making and Tooling Review and Outlook 2014 North America

This report provides in-depth analysis of the mold and toolmaking market for North America, including discussions of trends, opportunities, threats, the latest developments in production and labor and equipment trends impacting moldmakers.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events