How To Reach C&ENACS Membership Number


August 4, 2003
Volume 81, Number 31
CENEAR 81 31 p. 7
ISSN 0009-2347


More Job Cuts At ICI, DSM Follow Tough Quarter


Plummeting second-quarter earnings have prompted ICI and DSM to initiate significant new rounds of job cuts as part of restructuring efforts they announced earlier this year.

ICI, with net earnings of $105 million, down 22% compared with second-quarter 2002, on sales of $2.5 billion, says it will cut 1,400 jobs in addition to the 700 announced in May. DSM, with earnings of $75 million, down 44%, on sales of $1.5 billion, will cut 500 jobs in addition to the 100 it announced three months ago.

"The economic outlook remains uncertain," said ICI CEO John McAdam in announcing a restructuring plan that is expected to deliver savings of more than $160 million per year beginning in 2005. ICI will incur a charge of $372 million for the restructuring program. The company said there would be some unspecified minor divestitures.

DSM Chairman Peter Elverding said his firm's third-quarter earnings may be "strongly below" the second quarter, followed by a "clear recovery" in the fourth quarter.

DSM said it will cease production at some pharmaceutical and elastomers facilities. Its restructuring program is expected to result in an increased operating profit of at least $84 million per year beginning in 2005. DSM did not release figures on the cost of restructuring.


Chemical & Engineering News
Copyright © 2003 American Chemical Society

Related Stories
Mixed Pictures For European Firms
[C&EN, May 5, 2003]

Better Year For European Firms
[C&EN, Feb. 17, 2003]

More Companies Warn On Earnings
[C&EN, Apr. 14, 2003]

Change Of CEOs At ICI
[C&EN, Apr. 14, 2003]

E-mail this article to a friend
Print this article
E-mail the editor

Home | Table of Contents | Today's Headlines | Business | Government & Policy | Science & Technology | C&EN Classifieds
About C&EN | How To Reach Us | How to Advertise | Editorial Calendar | Email Webmaster

Chemical & Engineering News
Copyright © 2003 American Chemical Society. All rights reserved.
• (202) 872-4600 • (800) 227-5558

CASChemPortChemCenterPubs Page