August 1, 2018 / 5:41 AM / 19 days ago

UPDATE 1-DSM's Q2 core profit surges 35 pct on vitamin boost; confirms outlook

(Adds details on results, outlook)

AMSTERDAM, Aug 1 (Reuters) - Dutch speciality chemicals company DSM on Wednesday said second-quarter core profit surged 35 percent to 508 million euros ($593.2 million), boosted by exceptionally high vitamin prices and cost cuts.

Analysts in a Reuters poll on average predicted adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) to rise to 504 million euros.

DSM continued its strong run of profit growth, which was accelerated in the first half of 2018 as a fire at German rival BASF’s vitamin plant late last year led to shortages and higher prices.

Without the temporary effects of elevated vitamin prices, which are expected to ebb in the coming months, the company’s second-quarter core profit rose 6 percent, while sales climbed 8 percent to 2.2 billion euros.

DSM, whose products range from food supplements to plastics, fibres and resins for paints, confirmed its outlook for adjusted EBITDA growth “towards” 25 percent in 2018.

The company said it expected “high single-digit” growth in adjusted EBITDA from 2019 to 2021, as comparable sales outpace the market average with a yearly increase of around 5 percent.

$1 = 0.8564 euros Reporting by Bart Meijer; Editing by Stephen Coates and Sherry Jacob-Phillips

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