DSM reports strong performance in 2011 and increases dividend

2011 was another strong year for DSM despite the challenges of the global economy, adverse currency movements and high raw material costs. The company made good progress in Nutrition, and Polymer Intermediates delivered its highest profitability in history. Full year organic sales growth was 11%, well above DSM's strategic target of 5-7%. All clusters, especially Polymer Intermediates, contributed to this growth. Performance Materials posted a drop in EBITDA, which reflects the economic headwind. The Polymer Intermediates result was clearly above last year despite the economic conditions, although lower than in the previous quarters. Performance Materials posted a higher result for the year (EUR 293 mln), despite tough economic conditions in Q4 and weakness in the tender driven vehicle protection business at DSM Dyneema. Polymer Intermediates had its four best quarters ever in 2011, resulting in a very substantial increase in EBITDA (to EUR 380 mln), compared to a strong 2010 performance. Some of the highlights: o Q4 EBITDA from continuing operations up 6% to EUR 293 mln o Full year EBITDA from continuing operations increased 12% to EUR1,296 mln o Life Sciences delivered further EBITDA growth through Nutrition o Materials Sciences posted a strong year with record Polymer Intermediates results o Good strategic progress with Martek acquisition and joint venture with Sinochem o EPS (before exceptional items, continuing operations) up 22% to EUR3.53 Commenting on the results, Feike Sijbesma, CEO/Chairman of the DSM Managing Board, said: "2011 was another strong year for DSM despite the challenges of the global economy, adverse currency movements and high raw material costs. As a consequence we propose to increase our dividend for the second consecutive year. Furthermore, we made significant steps in the first year of implementing our growth strategy. This included the acquisition of Martek, the formation of the joint venture with Sinochem, the completion of non-core divestments, progress in sustainability-related innovations and expansion into high growth economies, which now account for 39% of sales. At the start of 2012 we announced an exciting joint venture with POET, to make advanced biofuels a reality on a commercial scale. We are conscious that risks to the macro-economic global outlook remain, and that weakness in Europe and some of our end markets, especially building and construction, persists. However, we believe that our balanced, relatively resilient portfolio in health, nutrition and materials, our broad geographic spread with a significant presence in high growth economies, together with our strong balance sheet, leave us well placed to achieve our ambitious 2013 targets."
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