Veba enjoys 29.8% hike in earnings

22 August 1994 00:00  [Source: ICB]

VEBA REPORTED a 29.8% hike in group pre-tax earnings to DM1.02bn ($641.6m) in the first six months from DM782m a year earlier, on sales that grew 6.9% to DM35.5bn from DM33.2bn.

The chemicals division posted sales unchanged at DM5.1bn. However, adjusted for acquisitions and divestments chemicals sales were 6% higher than in 1993.

These adjustments included the disposal of the plastics processing business of Hüls Troisdorf, the transfer of polyolefin activities to Veba Oel and the first-time consolidation of Phenolchemie. Almost all activities in this division contributed to this growth.

In the chemicals division, operating results improved substantially in all business areas, mainly due to structural streamlining and productivity enhancing measures implemented throughout the division. To secure a stronger competitive position in the long term the company introduced further restructuring measures in May.

The new streamlining programme focuses on the disposal or shutdown of rubber production and a further annual reduction of personnel costs by approximately DM300m. Overall the chemicals division showed a loss for the first six months due to the pro rata inclusion of related extraordinary expenses.

The number of employees in the chemicals division declined by 5384 in the first half as a result of acquisitions and divestments and the realisation of planned manpower reductions.

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