DSM shows strong growth in 2005

Dutch life-science, nutritional products and industrial chemicals group DSM says that its net sales for 2005 were up 5% to 8.1 billion euros ($9.7 billion) versus 7.8 billion euros in 2004. The group added that its net operating profit, excluding exceptional items which amounted to 36.0 million euros, was 563.0 million euros, up 33% on the previous year.

Peter Elverding, chairman of the DSM board, said that strategic and operational developments, instigated several years ago, were at the heart of the firm's financial performance. The company attributes the 3% drop in turnover of its life science products to the disparity in the sales price between its anti-infectives line and its fine chemicals business. Despite this, operating profits in the firm's life-science group increased from 79.0 million euros in 2004 to 126.0 million euros last year.

In addition, the firm says that it saw growth in: its nutritional products range, which increased in sales revenue from 1.91 billion euros to 1.94 billion euros; the performance materials division, which produced an operating profit for the year of 305.0 million with strong volume growth contributions from DSM Dyeema and DSM Engineering Plastics; and the company's industrial chemicals business, which showed growth in net sales from 1.7 billion euros in 2004 to 1.89 billion euros in the reported period, with operating profits of 165.0 million euros. The group says it expects operating profits in excess of 182.0 million euros for the first quarter of 2006.