DSM Fibre Intermediates' sales slip in Q3

28 Oct '05

2 min read

Diversified multi-national manufacturing company DSM reported the third quarter for 2005.

DSM once again No 1 in Chemical Industry sector of Dow Jones Sustainability World Index. In this report, 'operating profit' is understood to be operating profit from ordinary activities excluding exceptional items.

In Q3 2005 DSM posted a total Operating profit of EUR 220 million, which is up 44 percent from Q3 2004, due mainly to higher margins and lower fixed costs. Net profit amounted to EUR 151 million, up 25 percent from Q3 2004 (EUR 121 million).

On 5 September DSM affected a two-for-one stock split. On 30 September DSM transferred its share in the Rymco joint venture to the joint venture partner, marking the completion of the sale of DSM Bakery Ingredients. On the same date, DSM announced its intention to sell the SBR business. The sale is expected to be concluded in the fourth quarter.

At EUR 2.0 billion, sales from ongoing activities were up 6 percent from the third quarter of last year. Selling prices were on average 4 percent higher than in Q3 2004. Sales volumes showed an organic decrease of 1 percent (attributable to DSM Elastomers and DSM Fibre Intermediates). The acquisition of DSM NeoResins had a positive effect of 3 percent. Changes in exchange rates against the euro had virtually no effect on sales in this quarter.

DSM Fibre Intermediates' operating profit was lower than in Q3 2004, as expected, due to the shutdown of the caprolactam plant in Nanjing (China) as part of a capacity expansion. DSM Melamine posted a lower result, and the situation in its market is still unsatisfactory.

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