DSM presents 3rd quarter results
Dutch chemical giant DSM has reported a strong third quarter (Q3). Net sales from continuing operations in the 3rd quarter of 2007 were up 4% from the same period in 2006 due to organic growth (+5%).
solid volume growth. The downward price trend in some of the main vitamins was
reversed, supported by the differentiation strategy (e.g. Quali-C branding). The
situation in carotenoids was unchanged because of running yearly contracts.
DSM Nutritional Products’ operating profit decreased, mainly because of
the strong negative impact of the US dollar, the phasing-out of contracts with
Roche, innovation expenditure and costs related to moving the activities of the
Gonglu site to Xinghuo (both in China).
DSM Food Specialties’ sales and
operating profit decreased due to lower sales volumes (the remaining effect of
the phasing-out of phytase tolling) and higher innovation costs. DSM Special
Products (benzoic acid and benzaldehyde) showed a profit this quarter due to
higher sales volumes and margins.
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