The cuts come as DSM’s nutrition industry supply, or Life Sciences, businesses have boomed. Jon Peters, director of commercial operations for DSM Nutritional Products’ North American human nutrition business, recently commented to NBJ on the division’s performance, “DSM’s focus on differentiation and innovation, in combination with structural changes in the vitamins industry, has resulted in significantly higher prices and profitability.” Nutrition division sales were up 15% for the third quarter ended September 30, 2008.
The company’s Material Sciences businesses have been most negatively affected by the current state of the global economy and weakened consumer spending. Those businesses span the automotive, building & construction, electrical and electronics industries. Feike Sijbesma, chairman of the DSM Managing Board commented, “It is clear that the turmoil which began in the financial sector is seriously eroding business and consumer confidence in the wider economy. Although our Life Sciences businesses are continuing to perform well, most of our Materials Sciences businesses have increasingly been affected by the economic downturn. We are swiftly taking the necessary actions to maximize our cash flow and preserve profitability by reducing working capital and costs while at the same time further strengthening our competitive position."
More information on DSM’s U.S. nutrition supply business is available in NBJ’s December Raw Material & Ingredient Supply issue that will be released later this month.
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