DSM reports sharp rise in Q2 profits

AMSTERDAM: Royal DSM NV, the Dutch maker of chemicals, performance materials and food supplements, said Monday its second quarter profits soared on a mix of strong demand, cost-cutting and a weak dollar.

Net profit was 149 million ($196 million), up from 10 million in the same period a year ago. Sales rose 28 percent to 2.27 billion.

"Our outstanding performance in the quarter reflects very good volumes across our businesses combined with a continued disciplined focus on pricing and costs," said Chief Executive Feike Sijbesma in a statement.

"DSM has emerged from the recession as a stronger company and is now reaping the benefits, evidenced by robust results and a very strong balance sheet."

The company said it expected further recovery in its markets for the rest of 2010, with a new downturn unlikely but possible.

It said it expected strength in emerging economies in any case, and noted sales in China were particularly robust in the quarter.

Among major divisions, DSM's nutrition arm, the biggest producer of raw vitamins and food supplements, reported operating profits increased 27 percent to 158 million.

Operating profits from performance materials, such as those used in bulletproof vests, more than doubled to 58 million, while profits from polymers such as resins and plastics rose to 54 million from 4 million.

Operating profits from base chemicals rose to 22 million from a loss of 10 million. - AP

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