Degussa exceeds expectations

German specialty chemistry company Degussa reported a one per cent increase in sales in 2001 this week, up to €12.9 billion from €12.8 billion for the previous year. The company claimed that extensive restructuring, a focus on highly profitable specialities and strengthening its core activities helped the company exceed expectations. "We brought Degussa decisively to the fore in fiscal 2001, and exceeded expectations by far," stated Prof. Utz-Hellmuth Felcht, chairman of Degussa's Management Board, at the annual Degussa press conference held on Tuesday in Dusseldorf. "This shows that we consistently implement our strategic goals and reap success, even in a difficult business environment." Earnings before interest, taxes and amortisation of goodwill (EBITA) totalled €1,019 million, which is approximately the same level as in the previous year (€1,032 million). Sales for the group's core activities rose 4 per cent to €10.8 billion (up from €10.4 billion from the year before). Net income for the year rose by 4 per cent to €421 million (from €406 million in 2000), with earnings per share growing from €1.98 to €2.05. An unchanged dividend of €1.10 per share will be proposed at the Annual General Meeting in May. At the press conference, chief financial officer Heinz-Joachim Wagner reported that shareholders' equity amounted to €6 billion, and the equity ratio had risen from 31 per cent in 2000 to 33 per cent in 2001. Following the acquisition of Laporte, net debt was rapidly decreased to €3.1 billion as of 31 December 2001, lower than the comparable figure for 2000. Degussa remained upbeat for the second half of 2002. "We are optimistic that our core activities will continue to stand their ground thanks to their outstanding market position. Accordingly we expect a slight sales increase in our core activities in fiscal 2002. The EBITA of our core activities will also do better," said Prof. Felcht.

Degussa exceeds expectations

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