DSM says profits more than double on asset sales
Dutch chemical and pharmaceutical group DSM reported a 163-percent jump in net profit for the second quarter on Tuesday, boosted largely by sales and growth in the nutritional products sector.
The group's net profit climbed from 149 million euros ($212 million dollars) at the same time last year to 392 million, shored up by a sale of 140 million euros in shares it held in DuPont-owned Danisco and the sale of DSM Elastomers for 110 million euros.
DSM added that its integration of US-based nutrition specialist group Martek after a takeover, finished in February, was also "on track."
Net profit before exceptional items climbed by 5.0 percent from 158 million euros to 166 million euros, the group said in a press release.
Overall, the Dutch group's sales fell by four percent from 2.4 billion euros in the second quarter last year to 2.29 billion euros in 2011.
DSM said however strong growth within the nutritional sector continued. It said it had "posted its best quarter ever."
Sales of pharmaceutical products improved from the first quarter, but activity remained below last year's level. "DSM is conscious that overall performance of the cluster remains below acceptable levels," the statement said.
But DSM added that despite monetary and financial instability, caused by global debt challenges and volatile currency exchange rates, its markets remained unaffected.
"Trading conditions remained in line with the positive Q1 environment, as a result of strong growth in high growth economies and moderate, but continuing, growth in Western Europe and North America."
"The Japanese economy was still weak, following natural disasters in Q1," it added.
DSM employs some 22,000 people globally and manufactures products as diverse as nutritional supplements including a new way of fortifying sugar with Vitamin A, to pharmaceuticals, electronics and paints.
© 2011 AFP