HEERLEN, The Netherlands—DSM released results for its fiscal 2010 first quarter citing significant improvement in operating profit, not only in comparison with the weak first quarter of 2009 but also in comparison with 3Q09 and 4Q09. Q1 operating profit from continuing operations was €196 million (versus €44 million in 1Q09 and €149 million in 4Q09) Organic sales growth from continuing operations +25 percent compared to 1Q09.
The Nutrition sector continued to show healthy volume growth at price levels that were comparable to the last quarters of 2009. The Pharma cluster faced lower volumes compared to Q4 2009.
Commenting on the results, Feike Sijbesma, chairman of the DSM Managing Board, said: “I am pleased to report that DSM has delivered a very strong start to 2010. Operating profit from our core businesses is not only up very strongly compared to 1Q 2009, it has also returned to the level achieved in 1Q 2008. This reflects the outstanding performance of our Nutrition business, a continuing strong recovery in our Materials Sciences businesses and cost savings initiatives taken last year which already deliver €200 million on an annualized basis.
“Throughout the downturn, DSM has stayed the course—fully committed to our customers, innovation and sustainability. The announced sale of DSM Agro and DSM Melamine marks another important step in our transformation toward a Life Sciences and Materials Sciences company. While uncertainties remain in the medium term economic outlook, the strong 1Q result and continued positive business conditions give us confidence that 2010 will be a good year for DSM.”
