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EUROPEAN EARNINGS
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. |
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