Currency effects hit companies' results
DSM's Life Science Products division saw slightly higher fourth quarter 2002 results than in Q4 2001, despite the lower dollar exchange rate. The overall operating profit increased 9% due to higher sales volumes at DSM Anti-Infectives in particular. The results for DSM Fine Chemicals and DSM Pharmaceutical Products were at a level comparable with Q4 2001. Sales for the whole of 2002 were down 3% from 2001, mainly as a result of divestments. The operating profit was slightly higher, but the weakening of the US dollar had a negative effect. DSM Pharmaceutical Products was also affected by delays in the introduction of new products in the pharmaceutical industry.
The Merck Group maintained the previous year's record sales level of €7.5bn despite a negative currency effect of 5%. Fourth-quarter group sales of e1.8bn were in line with the 2001 period, aided by a strong performance by generics. Sales in the fourth quarter continued to be pulled down by a weak dollar as well as generic competition and over stocking in the US for Merck's top selling product, the oral anti-diabetic Glucophage. The Group's full-year organic sales growth rate was a positive 5%.
'We expect to be able to hold this course through the current year unless the euro significantly appreciates further,' ceo Bernhard Scheuble said.
Patheon reported revenues up by 31% to $123.1m from $93.6m in the first quarter 2003, with net earnings increasing 8% to $4.8m from $4.4m. 'Had exchange rates remained constant - European currencies continued to strengthen against the Canadian dollar in the first quarter - the increase in consolidated revenues would have been 25%,' said Robert C. Tedford, ceo of Patheon.
Speciality chemicals manufacturer Rhodia has seen a gradual return to profitability, with the completion of a significant asset divestiture program and the generation of positive operating cash flow. EBITDA was up 26.1%, to €798m against €633m reported in 2001. There was an improvement in operating income to €351m in 2002 compared with €91m in 2001. In addition to the impact directly related to the business activities divested in 2002, a number of external factors limited growth, including unfavourable foreign currency conversion rates linked to the US dollar and the Brazilian real, the absence of economic recovery in 2002 and the decision of the FDA to postpone approval of new molecules.
Serono, the world's largest biotechnology company, has increased total revenues by 12.4% to $1,546.5m in the full year 2002, and by 20.9% to $442.1m in the fourth quarter. Full year sales of Rebif (interferon beta 1-a) in multiple sclerosis were up 44.6% to $548.8m making it the company's top selling product in 2002. Sales in the US were $71.2m for the full year.