Dutch chemical producer DSM (Sittard; www.dsm.com) posted a 17% rise in adjusted EBITDA at EUR 1.26 bn for 2016 on the back of 3% sales growth of EUR 7.9 bn. Materials segment volume increased 4% but sales dipped 1% to EUR 2.51 bn due to pricing mix and currency impact. As a result, Materials contribution to group sales fell to 31.7% compared with 32.7% the year earlier. Its adjusted EBITDA climbed 13% at EUR 435m, driven by strong volume growth in higher margin specialities, cost savings and low input costs.

Materials fourth-quarter sales rose 6% to EUR 639m while EBITDA adjusted for restructuring and acquisition-related costs rose 17% to EUR 105m. It said quarterly seasonal effects were offset by "good" demand in many end-markets while buyers stocked up in face of rising raw material costs. The 16.4% quarterly adjusted EBITDA margin was below the approximately 18% seen in previous two quarters, partly due to slightly higher input costs.

In the fourth quarter, Engineering Plastics, one of Materials' three divisions, had "good" volume growth in specialties, particularly in automotive. Prices were lower reflecting low input costs. Resins and Functional Materials division (coatings) showed "strong" volume growth in all business lines, largely benefiting from improving conditions in Europe's building and construction markets and China's waterborne coating resins as well as continued strong performance in Functional Materials. Dyneema division PE fibres saw sales up "significantly", driven by strong growth in life protection, particularly for law enforcement, it said.

Full year sales to Europe gained nearly 3% at EUR 2.67 bn while those from Europe were higher at EUR 4.6 bn from EUR 4.22 bn.