(Adds vitamin E pricing trajectory, CEO quote)
AMSTERDAM, Feb 17 (Reuters) - Dutch supplements maker DSM’s core earnings rose 3 percent in the fourth quarter, boosted by strong sales growth at its nutrition division, and the company said it saw prices for key product Vitamin E stabilising.
DSM said on Wednesday it was on track to hit cost savings and productivity targets, reaffirming its aim of achieving 2016 earnings before interest, tax, depreciation and amortization (EBITDA) ahead of last year’s 1 billion euros ($1.12 billion).
The company said lower Vitamin E prices continued to have a negative impact in the fourth quarter, reducing core earnings by 25 million euros, but it said it anticipated that prices would stabilise after a difficult year.
“I don’t expect to talk a lot about vitamin E in 2016,” Chief Executive Feike Sijbesma said on a media call.
Overall, currency effects helped results, despite the strong Swiss franc eating in to margins at a manufacturing site in Switzerland.
DSM reported fourth-quarter EBITDA of 261 million euros, in line with 259 million euros forecast by analysts polled for Reuters. Sales rose 6 percent year-on-year to 1.9 billion euros. ($1 = 0.8953 euros) (Reporting by Toby Sterling; Editing by Susan Thomas and Keith Weir)
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