Dutch DFSM chemicals reports profit leap

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Dutch chemical group DSM boosted net earnings by nearly 15-fold in the second quarter, reporting on Tuesday that it expected strong results for the whole year.

Net profit in the quarter was 149 million euros (197 million dollars) from 10 million euros in the second quarter of last year.

Analysts as polled by Dow Jones Newswires had expected a net figure of 122 million euros.

DSM said that market conditions had improved and that it was benefiting from a cost-cutting programme launched in 2008.

In the first quarter, DSM had reported a net profit of 130 million euros.

But DSM warned on Tuesday that there remained a risk that economic recovery could slow down.

Sales in the second quarter rose by 23.0 percent 2.4 billion euros, and operating profit rose by more than three times to 252 million euros.

The company employs 22,217 people or 521 fewer than at the end of last year, owing mainly to the sale in March of DSM Agro and DSM Melamine to Egyptian group Orascom for 310 million euros.

© 2010 AFP

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