DSM results are a mixed bag
Dutch DSM (Science and Chemicals, Pharmaceuticals and Performance Materials, Polymer Intermediates) could maintain turnover in the second quarter as to the same laps of time in 2011, namely EUR 2268 (EUR 2265) million, but organic growth dropped by 3 %, volume by one percent and price by 2 %. On the other hand there was a gain of 5 % on exchange rates
Performance Materials increased its sales by one percent or from EUR 709 to EUR 713 million, but had 7 % less organic growth and a drop of six percent in volume and one percent in price and a six percent gain on exchange rates. The operating result EBITDA fell from EUR 82 to EUR 77 million. And the operating margin decreased from 22.6 to 10.8 %. The Polymer Intermediates Division had a drop in sales from EUR 423 to EUR 389 million or by 8 %, the draw back on organic growth was 14 % and on volume 3 % and on price 11 %. The operating result decreased by 68 % or from EUR 93 to EUR 30 million.
The corporate result for the half year in sales was an increase of one percent or from EUR 4499 to 4558 million, performance materials’ turnover remained with EUR 1414 million unchanged and Polymer Intermediates had a drawback of 7 % or from EUR 880 to EUR 819 million. Of course all of this is reflected also in the corporate operating result and net profit that dropped from EUR 558 to EUR 186 million.
For the second half of the ongoing year Performance Materials are to continue to be volatile and not expected to improve but the operating result should be in line to match the one of last year. Also Polymer Intermediates are not to improve significantly and the results will be further impacted as a consequence of turnaround shutdowns of the caprolactam plants in China and North America in the second half of this year but operating profit should be at the same level as in 2011.