Dutch chemicals group DSM cuts profit target as costs soar (updated)
01/11/2022 06:54
(Adds quote, detail on outlook, results)
By Tristan Chabba
Nov 1 (Reuters) - Dutch specialty chemicals maker DSM
DSMN.AS on Tuesday lowered its 2022 outlook after it saw
energy and raw material cost inflation accelerate in Europe in
the third quarter.
The group, which makes products from vitamins and food
supplements to specialised plastics used in cars, clothing and
construction, expects its adjusted core earnings (EBITDA) from
continuing operations to grow at a low-single-digit percentage
rate, against high-single-digits it had guided for earlier.
"We continue to counter rising energy and raw material
prices, which accelerated especially in Europe, albeit with a
time lag," co-CEOs Geraldine Matchett and Dimitri de Vreeze said
in a statement.
DSM said it expected the widening gap between costs and
prices to impact its fourth-quarter earnings.
It also cited its targeted focus on driving working
capital and cashflow for the outlook cut.
The company, based in the southern Dutch town of Heerlen,
reported 3% growth in third-quarter adjusted EBITDA to 356
million euros ($353 million) from continuing operations, against
a consensus estimate of 359 million euros.
It posted quarterly sales of 2.18 billion euros, slightly
above the 2.10 billion euros expected by analysts.
($1 = 1.0077 euros)
(Reporting by Tristan Chabba in Gdansk; editing by Milla Nissi)
((Tristan.Chabba@thomsonreuters.com;))