Dutch lifescience and material science company Royal DSM reports strong Q4
results based on 10% organic sales growth.
The operating profit for 2007 of € 823 million is in line with expectations,
it said in a press release. Net profit before exceptional items of €558 million
is better than last year and earnings per share was 8% higher. DSM has proposed
a dividend of € 1.20 per ordinary share (up 20%).
Chairman of the DSM Managing Board, commented: "DSM performed well in 2007 with
good sales growth, particularly during the fourth quarter, and strong results in
light of the challenges faced by the company during the year. In 2008, we also
expect to perform well."
"'DSM is fully on track to meet the objectives
set out in the accelerated Vision 2010 strategy. In 2008, we will continue the
transition towards a Life Sciences and Materials Sciences company, addressing
the needs of tomorrow's society and capable of delivering sustainable growth,"
Full-year sales for nutrition were 6%
above last year. Compared to 2006, both Animal Nutrition & Health and Human
Nutrition & Health in DSM Nutritional Products achieved solid volume growth
and the negative price trend in the more mature part of the business was stopped
and partly reversed by DSM's differentiation strategy.
Nutritional Products' operating profit decreased because higher organic growth
did not fully compensate for the expiration of Roche contracts, higher energy
and raw-material costs, higher innovation expenditure and negative exchange-rate
DSM Food Specialties' sales and operating profit decreased due
to the contractual phasing-out of the phytase tolling business in 2006. The
strong improvement at DSM Special Products was driven by higher sales volumes
and margins and lower fixed costs. Fourth-quarter sales were 13% higher than in
Q4 2006 because of higher sales volumes and higher selling prices and despite
the negative effects of the US$ exchange rate. The operating profit was higher
than in Q4 2006 due to DSM Special Products.
ahead to 2008, DSM expects continuing good organic growth, particularly from
emerging markets and the launch of new products. In addition, the current
programs underway in the Nutrition and Anti-Infectives businesses will result in
improved contributions to profit from these businesses. DSM also expects a
continuation of the improved pricing levels seen in 2007 in the more mature part
of the Nutrition business, especially in vitamins.
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