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

Americhem beats weather woes at start of 2014 for good fiscal year

November 26, 2014 9:45 am ET

Gains from the automotive and construction markets provided a strong fiscal 2014 for Americhem Inc.    More

Image

PE prices drop for first time in two years, PP down 5 cents

November 26, 2014 10:22 am ET

North American polyethylene buyers might want to circle November 2014 in red on their calendars — since PE prices this month have fallen for...    More

Image

2014 US machinery shipments up 6 percent

November 25, 2014 5:17 pm ET

Through the first nine months of 2014 U.S. shipments of primary plastics equipment — for injection molding, blow molding and extrusion —...    More

Image

Globalization brings sizable growth, primarily in Asia

November 25, 2014 1:40 pm ET

In 1990, the year after Plastics News published our first issue, there were 33,000 injection molding machines sold worldwide. Fast forward to 2013,...    More

Image

Taipei Plas vandal and German firm trade lawsuits

November 25, 2014 1:26 pm ET

Taiwan businessman Karma Tang, who splashed red paint at German firm Baumüller GmbH's Taipei Plas booth, is in a messy legal battle.    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

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

January 14, 2015 - January 14, 2015Plastics in Automotive

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

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

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

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events