May 24, 2011

DSM CFO expects 2011 to be a better year

The CFO of Royal DSM NV expects 2011 to turn out noticeably better than 2010.

"Even on a comparative basis 2011 will be significantly better than the previous year," said CFO Rolf-Dieter Schwalb. "In addition there's, among other things, the acquisition of Martek in the US."

The CFO said efforts by North American car makers to use more plastic in automobile production to make their products lighter and more fuel-efficient was boosting DSM's plastics business.

Chemicals companies have faced accelerating raw materials prices and energy costs in recent months due to recovering demand and political instability in oil-producing states.

Schwalb said raising prices was necessary since higher raw materials prices had not yet been fully offset. DSM's margin was 13% but needed to rise to 17%, he said.