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69% Increase In DSM's First-Quarter Profits to EUR 137 Million

02 May 2000

DSM posted a net result from ordinary activities of EUR 137 million for the first quarter of 2000, up 69% from Q1 1999. Commenting on the result, Peter Elverding, chairman of the DSM Managing Board of Directors, said: "The high sales-volume growth of 15% and the strong increase in net profits clearly show that our strategy of profitable growth is successful. Furthermore, the Operational Excellence programme is clearly paying off. Given this favourable start, I expect DSM's profits in 2000 to be considerably higher than in 1999." Net sales in the first quarter of 2000 amounted to EUR 2.0 billion, 33% higher than in the first quarter of 1999, and were the highest quarterly sales in DSM's history. First-quarter sales were higher than in 1999, despite the divestments made by DSM Engineering Plastic Products in 1999 and by DSM Composite Resins in Q1 2000. The increase in sales was due to the higher sales volumes recorded by all business groups, especially DSM Engineering Plastics and DSM Elastomers, and the high exchange rate for the dollar. Margins were under pressure due to an increase in raw-material prices. On balance, the operating result increased, in particular at DSM Engineering Plastics.