DSM full-year 2006 profit up 4% to $1.1B

Netherlands-based pharmaceutical and nutritional ingredients group DSM says that its operating profit from continuing operations for the full year 2006 was 835.0 million euros ($1.09 billion), up 6% on the year before, while net profit rose 4% to 547.0 million euros, including a negative 4.0 million euro-effect from exceptional items.

In 2006, sales for the group as a whole increased 2% to 8.38 billion euros. In its pharmaceuticals business, full-year sales fell 2% to 916.0 million euros, due to the divestment by DSM Pharmaceutical Products of the South Haven, USA, site in September and other restructuring measures. Despite the slight decrease in sales, the operating profit for the cluster soared 59% to 65.0 million euros.

Part of the firm's pharamceuticals unit, the DSM Pharma Chemicals business, showed a higher activity level, while DSM Anti-Infectives' result improved compared to 2005 but remained negative, with selling prices on average slightly improving compared with 2005 and fixed costs being lower, despite a dramatic rise in the cost of raw materials, the company noted.