DSM has reported second quarter 2014 EBITDA from continuing operations of €293 million compared to €332 million in Q2 2013, and €272 million in Q1 2014. The company noted that the reduction in EBITDA was partially a result of adverse currency movement (€29 million) and a €16 million impact from the fire at a nutrition plant in Switzerland. Nutrition showed improvement compared to the last two quarters. Performance Materials continued its encouraging underlying trend and delivered higher results.
Overall, sales were down 5%, which the company attributed to price/mix (2%) and currency exchange (3%).
“DSM delivered improved results versus the first quarter, despite persistent currency headwinds,” said Feike Sijbesma, CEO/chairman of the DSM Managing Board. “Performance Materials saw continued positive momentum in a number of end-markets, whereas Polymer Intermediates has seen weaker business conditions for caprolactam. Market conditions in Nutrition have shown some improvement with good Animal Nutrition performance in Q2, while Human Nutrition still operates in a low growth macro environment for some end-markets due to ongoing pressure on consumer spending.”
“In this environment, the resilience of our integrated value chain is demonstrated by robust margins, highlighting the quality of our Nutrition business. In addition we are undertaking initiatives in the US to reinforce the attractiveness of our dietary supplements end-user categories.”
"We continue to focus on efficiencies to protect profitability and improve cash flow in the current environment. Despite the weakness in caprolactam, we continue to anticipate to deliver improving financial results in the coming quarters.”
