DSM: profits drop in 2Q; nutrition does well
Chemical company DSM, producer of e.g. animal nutrition products, has seen its profits decrease in the second quarter in comparison to last year's second quarter.
Total company results (ebit) went down to €79 mln. One year earlier, DSM, headquartered in Heerlen, the Netherlands, reported record profits of €276 mln. Sales went down from €2.5 bln to €2.0 bln.
The company's Nutritional Products division, which includes the manufacturing and sales of animal nutrition products, maintained its very strong performance, based on its marketing strategy and the change in industry dynamics. The economic downturn is having a limited effect on trading conditions.
DSM predominantly felt the recesision in its Material Sciences division. Clusters involved are related to the car industry, electronics and construction.
More cost-cutting operations are likely to follow. In 2010, the company hopes to save €125 mln. As a consequence, approximately 1,250 jobs will disappear worldwide.
For the quarterly report, click here.
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