DSM net profit more than doubles in quarter
Nov. 2, 2011
by Jeff Gelski
HEERLEN, THE NETHERLANDS — Third-quarter net profit for DSM rose to €171 million ($234 million) from €79 million in the previous year’s third quarter. Net sales from continuing operations for the quarter ended Sept. 30 climbed 14% to €2,322 million ($3,190 million) from €2,041 million.
“We are pleased to have delivered continued profitable growth compared to last year across all business clusters,” said Feike Sijbesma, chief executive officer and chairman of Heerlen-based DSM, when third-quarter results were given Nov. 1. “This performance has been achieved despite the significant impact of a very strong Swiss franc and a weak U.S. dollar.”
On average, the Swiss franc was 13% stronger against the euro compared to the third quarter last year, according to the company. The U.S. dollar was 10% weaker compared to the third quarter last year.
DSM’s Nutrition cluster had third-quarter EBITDA of €176 million, up from €167 million in the previous year’s third quarter. Nutrition third-quarter sales of €868 million were up 16% from €751 million. Organic growth accounted for 8% of the growth. Recently acquired Martek Biosciences Corp. had sales of €84 million and EBITDA of €26 million in the third quarter. The weak U.S. dollar mainly caused a currency impact on sales of minus 2%.
Companywide, DSM’s net profit for the nine months ended Sept. 30 was €729 million, up from €358 million in the same time period of the previous year. Net sales for the nine-month period increased 12% to €6,821 million from €6,094 million.