DSM net profit fall

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Related tags: Generally accepted accounting principles

In Q2 2001, DSM reported a profit on ordinary activities after
taxation of Euro 106m, same as Q1 2001. Net earnings per share
amounted to Euro 1.05.

In Q2 2001, DSM reported a profit on ordinary activities after taxation of Euro 106m, same as Q1 2001. Net earnings per share amounted to Euro 1.05. Compared with Q2 2000, DSM net profit fell by Euro 63m to reach Euro 106m. "Given the sharply deteriorating economic conditions, I am not dissatisfied with a quarterly profit that is at the same level as the first quarter profit. Admittedly, the profit is substantially lower than our record profit for the second quarter of 2000, but without the portfolio shift towards Life Science Products & Performance Materials that we initiated several years ago and without our ongoing effort to improve our cost position, our profits would have been much lower," said Peter Elverding, chairman of the DSM Managing Board of Directors. Net sales in the second quarter, reached Euro 2.1bn, a five per cent increase compared with the same period last year. Acquisitions and divestments on balance resulted in one per cent sales increase. On average, selling prices were three per cent lower than those of the same period last year. There was a three per cent increase in net sales due to change in DSM's consolidation principles with effect from the financial year 2001. DSM's Q2 operating profit after amortisation of goodwill, reached Euro 150m, 37 per cent less than the record profit in Q2 2000. This is due to lower margins especially in the Polymers & Industrial Chemical cluster. The operating profit for the Life Science Products and Performance Materials combined reached Euro 55m, compared to Euro 49m in Q2 2000. Q2 sales for the Life Science Products rose 20 per cent compared to the same period last year. The Bakery Ingredients cluster posted lower profits than those of Q2 2000, due to a margin reduction resulting from price increases in raw material molasses. However, the Anti-Infective and Food Specialties clusters posted higher profits thanks to a rise in sales volumes and margins.

Related topics: Market Trends

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