DSM Features Lower Operating Profit Caused by Negative Impact of US Dollar

30/04/07 DSM announced that its first quarter sales rose 4% to 2.14 billion euro. EBIT, however, fell 6% to 192 million euro.

In a statement, DSM attributes lower operating profit in part to ‘much lower average currency exchange rates’; the ‘phasing-out’ of some contracts related to the acquisition of Roche Vitamins had a negative effect of ‘less than EUR 10 million’.

DSM Nutritional Products saw its sales volumes in animal and human nutrition/health grow compared to Q1 2006.

DSM Nutritional Products’ operating profit declined as a result of lower margins and the strongly negative impact of the US dollar, the company said.

“The operating profit was also negatively affected by reduced output at the Dalry site (Vitamin C, UK), which has continued into the second quarter due to a fire in a transformer”, added DSM.

Sales at DSM Food Specialties rose, but operating profit was lower due to the phasing-out of the feed-enzymes tolling activities last year.

The first quarter was also marked by the launch of CakeZyme, an enzyme used to enhance the quality and reduce the manufacturing cost of products in the cake and pastry industry.