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

Prices trending up for some recycled resins

July 24, 2014 1:27 pm ET

Plastics News is correcting prices for recycled grades of several commodity resins on this week's resin pricing chart.    More

Meredian merging with Danimer Scientific

July 24, 2014 1:59 pm ET

Bioplastics maker Meredian Inc. is merging with its sister firm, Danimer Scientific LLC.    More

Image

US Bioplastics receives funding to bring Gatoresin to the market

July 24, 2014 1:44 pm ET

Materials maker U.S. Bioplastics is hoping its Gatoresin product will take a bite out of the bioplastics market, thanks to funding from a state...    More

Image

BASF posts growth in second quarter

July 24, 2014 11:08 am ET

German chemical giant, BASF SE, has announced a 1 percent growth in sales for the second quarter of 2014 compared to the same period in...    More

Image

Bayer PC used for lightweight, durable luggage collection

July 24, 2014 10:52 am ET

Bayer MaterialScience has partnered with U.S.-based travel goods manufacturer Andiamo Luggage LLC to create a special plastic for suitcases that is sc...    More

Market Reports

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

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

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events