Heerlen, the Netherlands - Royal DSM NV, a global life sciences and materials company with a portfolio that includes polyurethane coatings, has reported that demand increased in some markets in the third quarter of 2009 (Q3), compared to the same period last year.
The company said demand had "clearly improved" in Q3 in its Performance Materials and Polymer Intermediates units, compared to the first two quarters of the year. "A better performance" was also reported in July and August from the company's two Materials Sciences clusters and Base Chemicals & Materials cluster - resulting in an operating profit of double the Euro 58 million reported in Q2 2009, the statement said.
Despite the improved performance in Q3 2009 compared to the previous quarter, customer demand is still fragile and the economic outlook remains uncertain, DSM said, adding that the Base Chemicals & Materials cluster is still expected to be loss-making in 2009, in spite of a strong improvement in Q3.
"DSM remains in good shape as a result of ongoing resilience of the Life Sciences businesses, early and aggressive action to reduce costs, a focus on cash, stringent management of working capital and a strong balance sheet," said DSM chairman, Feike Sijbesma. "Our net debt continues to decrease. We are in an excellent position to take advantage of opportunities that will arise," he added. (RD)