HEERLEN, Netherlands (March 2)—DSM N.V.'s elastomers business is back in the black as demand last year for EPDM picked up and the company was able to offset raw materials cost increases with price hikes of its own.
DSM Elastomers—which claims to be the world market leader in EPDM with annual capacity of 200,000 metric tons and a market share of about 20 percent—credited improved margins in all its operating regions and the positive results of restructuring for the operating result. The restructuring included closing EPDM plants in Addis, La., and Chiba, Japan.
Sales grew 18.3 percent to $724.2 million.
DSM Elastomers does not report earnings separately, but operating profits for the Performance Materials Division were up 63.3 percent to $182.6 million, while division sales improved 13.3 percent to $2.5 billion, DSM said.
DSM also said its other rubber businessùSBR—"derived considerable benefit from the improved market conditions in the tire industry." It did not divulge specifics on the SBR business, which was separated out from the elastomers unit and is part of DSM Venturing & Business Development.