Degussa Q1 op pfts up 10% to Euro205m on flat sales

09 May 2003 10:44  [Source: ICIS news]

Utz-Hellmuth Felcht

LONDON (CNI)--German specialty chemicals company Degussa reported on Friday a 10% rise to Euro205m ($230m) in first quarter earnings before interest and tax (EBIT) on sales up just 1% at Euro2.90bn.

Operating profits after interest were up 29% to Euro151m and net income soared to Euro86m from Euro6m in Q1 last year.

The results, which included non-core businesses, were described by chairman Utz-Hellmuth Felcht at Degussa's annual general meeting (AGM) today as a "sound start" to the new financial year.

"In view of the first quarter results, we are upholding our outlook for 2003 as a whole and continue to anticipate an improvement in sales, EBIT and the operating result in our core business," he said.

Last year, Degussa's core activities reported an EBIT of Euro953m on sales of Euro10.96bn.

Felcht's forecast of improved full year results was made despite his belief that the global economy will probably stagnate on a macroeconomic level in the first half, with little prospect of a reversal of this trend in the second half.

"Degussa's strategy of aligning its core business to robust operations with low cyclical exposure and expanding its restructuring programme was already beginning to prove its worth in 2002," Felcht told the AGM. "Systematic continuation of this strategy will again underpin its operating profit in the current financial year."

Further details of Degussa's first quarter results will be disclosed on 13 May.

By: Neil Sinclair
+44 20 8652 3214

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