DSM May Acquire More
There will be “no pause” in the takeover strategy with other targets like Martek out there, chief financial officer Rolf-Dieter Schwalb said on a call. First-quarter earnings beat estimates, sending DSM shares up the most in two years.
Chief executive officer Feike Sijbesma last year sold fertilizer, melamine and citric-acid businesses, aiming to expand in more profitable food ingredients and synthetic fibers. The disposals were part of a decade-long transformation of DSM into a so-called life sciences company using organisms to make materials applicable to industry.
“The company has a war chest of more than 2 billion euros, and management has a strong track record of doing acquisitions,” said Mutlu Gundogan, an analyst at Royal Bank of Scotland, which has a “buy” recommendation on DSM shares.
Operating profit from continued operations rose 14% to 325 million euros ($478 million) in the first quarter, beating a 287.8 million-euro analyst estimate.
From the April 27, 2011, Prepared Foods' Daily News.