October 29, 2007

DSM posts strong third quarter results

Dutch chemical giant DSM has reported a strong third quarter (Q3) as net sales from continuing operations in the period were up 4 percent from the same period in 2006 due to organic growth (+5%).

Compared to Q3 2006, DSM Nutritional Products achieved solid volume growth. The downward price trend in some of the main vitamins was reversed, supported by the differentiation strategy (e.g. Quali-C branding). The situation in carotenoids was unchanged because of running yearly contracts.

DSM Nutritional Products' operating profit decreased, mainly because of the strong negative impact of the US dollar, the phasing-out of contracts with Roche, innovation expenditure and costs related to moving the activities of the Gonglu site to Xinghuo (both in China).

DSM Food Specialties' sales and operating profit decreased due to lower sales volumes (the remaining effect of the phasing-out of phytase tolling) and higher innovation costs. DSM Special Products (benzoic acid and benzaldehyde) showed a profit this quarter due to higher sales volumes and margins.