Higher Volumes and Selling Prices Lift DSM's Operating Profits

摘要

DSM's third-quarter sales and operating profit from continuing operations rose in the third quarter because of improved volumes and selling prices across most of the company's businesses. Net income including discontinued operations and exceptional items fell 10%, to european dollar 358 million, on sales up 19%, to european dollar 2.2 billion. Economic growth continued during the quarter, but at a slower pace than in the second quarter, DSM says. Most end markets continued to grow, especially those related to material sciences, and have nearly returned to levels before the economic crisis hit in mid 2008. Demand in the building and construction markets, however, remains weak, the company says. The nutrition business's operating profit rose 15%, to european dollar 137 million, on sales 7%, to european dollar 751 million. The business "experienced some volume growth," but selling prices were lower than year-ago levels, DSM says. Performance materials sales jumped 25%, to european dollar 666 million, and earnings rose 7%, to european dollar 48 million. Volumes and selling prices drove earnings growth, but a time lag in passing on higher raw material costs partially offset those gains, DSM says. Polymer intermediates' earnings soared 90%, to european dollar 40 million, on sales up 29%, to european dollar 340 million on higher selling prices and continued strong demand. Base chemicals and materials' earnings nearly tripled, to european dollar 19 million, on sales up 24%, to european dollar 154 million, also on higher volumes and selling prices.