DSM updates market on trading conditions and strategy progress at its
annual Analysts Conference
(Thomson Reuters ONE) - Royal DSM N.V., the global Life Sciences and Materials Sciencescompany headquartered in the Netherlands, today will update investorsand analysts at its annual Analysts Conference in Amsterdam (NL) onthe progress made with its Vision 2010 strategy. DSM is alsoproviding an update on recent trading conditions.Feike Sijbesma, Chairman of the DSM Managing Board, comments:"Customer demand in some markets improved in Q3 2009 compared to Q2,which is reflected in further improved results compared to theprevious quarters. The extent to which this improved demand will besustained in the coming quarters remains uncertain."We continue our strategic commitment to our customers, innovationand values. DSM remains in good shape as a result of ongoingresilience of the Life Sciences businesses, early and aggressiveaction to reduce costs, a focus on cash, stringent management ofworking capital and a strong balance sheet. Our net debt continues todecrease. We are in an excellent position to take advantage ofopportunities that will arise. DSM is staying the course."Strategy progressDuring today's conference, DSM will update the investment communityon progress made with its accelerated Vision 2010 strategy which isaimed at DSM's transformation into a Life Sciences and MaterialsSciences company. The following information will be given:ÿ Strategic commitment to customers, innovation and valuesmaintained.ÿ Continued innovation growth despite the downturn.Additional innovation-related sales compared to 2005 are expected toreach approximately EUR 770 million in 2009, a nearly 30% increase on2008.ÿ An ongoing strategic focus on emerging economies, whichcontinue to grow (approaching 30% of DSM sales in 2008).ÿ Progress with the intended partnership with North ChinaPharmaceutical Corporation Ltd. (NCPC) to create three joint venturesin the areas of nutritional products and anti-infectives is delayeddue to the acquisition of Hebei SASAC's stake in NCPC by JiZhongEnergy Co.ÿ Continuation of the disposal program, with the aim ofcompleting the disposals by the end of 2010.Trading updateDuring Q3 2009 DSM has seen a continuation of the trends that werevisible at the end of the second quarter with ongoing robustperformance in Nutrition and a further improvement in MaterialsSciences. The potential risk of temporarily lower demand during thesummer did not materialize.As a result of a better performance by the two Materials Sciencesclusters and by the Base Chemicals & Materials cluster in July andAugust, operating profit from continuing operations beforeexceptional items for Q3 2009 is expected to be about double the EUR58 million of Q2 2009.Despite the improved performance in Q3 2009 compared to the previousquarter, customer demand is still fragile and the economic outlookremains uncertain. The movements in inventories in the value chain aswell as the development of end-demand are difficult to separate andpredict. Therefore DSM will continue to focus on cash and cost, butwill at the same time continue its strategic commitment to customers,innovation and values. This is confirmed by the recent ranking as thesector number 1 in the Dow Jones Sustainability World Index.For the Nutrition cluster, DSM continues to expect full year resultsto be somewhat above the 2008 level. Pharma results are expected tobe substantially lower than last year although the results of DSMPharmaceutical Products are expected to be better towards the end ofthe year.In Performance Materials and Polymer Intermediates demand has clearlyimproved in Q3 compared to the first two quarters of the year. AtPolymer Intermediates this improved situation could now lead to anoperating result around break-even for the cluster in 2009.Uncertainty regarding demand for the rest of the year continues forboth clusters.The Base Chemicals & Materials cluster is still expected to beloss-making in 2009, in spite of a strong improvement in Q3.In view of the uncertain economic conditions and the lack of clarityabout future demand, DSM will provide no quantitative outlook for thefull year 2009.WebcastThe annual conference for analysts can be followed from 11.00 until13.00 hrs (CET) via an audio webcast. For a link see the Investorssection on the DSM corporate website.DSM - the Life Sciences and Materials Sciences CompanyRoyal DSM N.V. creates innovative products and services in LifeSciences and Materials Sciences that contribute to the quality oflife. DSM's products and services are used globally in a wide rangeof markets and applications, supporting a healthier, more sustainableand more enjoyable way of life. End markets include human and animalnutrition and health, personal care, pharmaceuticals, automotive,coatings and paint, electrical and electronics, life protection andhousing. DSM has annual net sales of EUR 9.3 billion and employs some23,500 people worldwide. The company is headquartered in theNetherlands, with locations on five continents. DSM is listed onEuronext Amsterdam. More information: www.dsm.com.For more information:DSM Corporate Communications DSM Investor RelationsHerman Betten Hans Vossentel. +31 (0) 45 tel. +31 (0) 45 57828645782017 fax +31 (0) 45 5782595fax +31 (0) 45 e-mail5740680 investor.relations(at)dsm.come-mail media.relations(at)dsm.comhttp://hugin.info/130663/R/1343254/321726.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 24.09.2009 - 07:15 Uhr
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