DSM Elastomers under pressure

By Patrick Raleigh, ERJ On-line news editor

Heerlen, The Netherlands-DSM Elastomers' margins remain under pressure in the first half of 2004, according to parent group DSM NV. The problem, it said, continues a negative trend from last year, which impacted both sales and earnings at the EPDM rubber and thermoplastic elastomer supplier.

DSM Elastomers' problems combined with a weaker dollar to offset gains elsewhere in DSM's Performance Materials 'cluster', DSM reported 11 Feb.

The Performance Materials grouping, which also includes engineering plastics, resins and glass fibre coatings, posted a 9.6-percent year-on-year dip in 2003 earnings to Euro178 million, on sales down 1 percent to Euro1777 million.

Fourth quarter earnings at the Performance Materials unit fell 30 percent to Euro16 million on sales 7 percent higher at Euro451 million. The parent group again blamed the lower earnings on lower margins at DSM Elastomers.