In the fourth quarter of 2009, DSM reported that its businesses continued to experience developments at two different speeds. Growth in most emerging markets - especially China - is back at the level before the economic downturn, while growth in Europe and North America is still modest and fragile, although market conditions are clearly better than at the beginning of 2009. The company said that its Q4 results were "in line with the previous quarter."

DSM saw steady growth in its Nutrition segment, which it said reflected long-term developments typical in the food and feed related markets. The Pharma cluster improved its performance temporarily in Q4, which the company said was due in part to a strong increase in the sterile vaccine business related to the flu pandemic.

The Materials Sciences clusters continued to recover, although interrupted by the seasonal end-of-year effect. DSM said its impression is that the level of downstream re-stocking is limited.

In Base Chemicals and Materials, most of the company's units are back at modestly profitable levels, with the exception of DSM Agro. The business reported a strong Q4 2008, but is now facing a loss due to very depressed margins compared to Q4 2008.

The company said the full year 2009 was strongly affected by the impact of the economic downturn. The operating result of the core part of DSM (continuing activities, excluding Base Chemicals and Materials) was down 26% from € 595 million to € 438 million.

The company was also able to report good cash performance in 2009, with operating cash flow at €1,276 million, which was substantially more than in 2008, when DSM achieved the best operating profit in its history. The company was also able to reduce its capital expenditure by 25% compared to 2008 and two non-core activities were sold. As a result, net debt more than halved during the year to €830 million.

"Our strong financial position leaves us well placed to capitalize on any opportunity that might arise," Feike Sijbesma, chairman of the DSM managing board, said.

DSM said it has made good progress in 2009 towards two important targets of its Vision 2010 strategy. Sales in China in 2009 increased to almost $1.2 billion, a new record for the company, strongly driven by volumes. DSM said it expects to come close to the $1.5 billion target for 2010. In 2009 innovation sales were about €810 million, 35% more than in 2008, which is a good basis to reach the target of €1 billion additional sales in 2010 compared to 2005.

"As we have entered an uncertain 2010, DSM will continue its strategic transformation into a Life Sciences and Materials Sciences company," Sijbesma said. "Whilst recognizing the uneven nature of the current economic recovery, we are cautiously optimistic."