NETHERLANDS: DSM shares fall despite rising Q3 profits
Shares in food ingredients group DSM closed down more than 3% today (2 November) after the company's operating profit in the third quarter missed analyst estimates.
DSM, which makes enzymes, cultures and yeast extracts for dairy, baking and savoury manufacturers, booked a 28% increase in operating profit from continuing operations to EUR185m. Net sales rose 19% to EUR2.15bn.
However, analysts polled by Bloomberg and Reuters had expected group operating profit of EUR204m.
Chairman Feike Sijbesma said DSM had had "another strong quarter" and insisted that the "continued positive business environment" meant the company expected 2010 to be "a strong year".
Sijbesma said DSM's nutrition business had "delivered a continued excellent performance". Operating profit from the unit rose 15% to EUR137m. Sales rose 7% to EUR751m, driven by foreign exchange. On an organic basis, sales were flat.
DSM shares finished the day's trading down 3.4% at EUR37.19.
Click here for the full statement from DSM.
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