Industry News

Degussa Releases Interim Report for January 1 - June 30, 2004

Published on 2004-08-10. Author : SpecialChem

  • Core businesses raised EBIT 13 percent in the 2nd quarter and 10 percent in the first six months
  • Group net income increased 72 percent in the first six months
  • Outlook for 2004 unchanged: core businesses should report a slight rise in sales and EBIT

"Following a good start to the year, our business continued to develop very well in the second quarter of 2004. High demand enabled all divisions to report a considerable improvement in sales and earnings: sales increased by 6 percent and EBIT was up 13 percent," reported Prof. Utz-Hellmuth Felcht, Chairman of Degussa's Board of Management, when the Group published its half-year figures on Monday.

In the first half of 2004 the core businesses raised sales by 2 percent to €5,469 million (H1 2003: €5,375 million). This was mainly due to a 5 percent rise in volume sales, while selling prices were unchanged and exchange rate movements trimmed sales by 3 percent. Overall, Group sales totaled €5,601 million in the first six months and were thus roughly in line with the year-back figure of €5,624 million.

EBIT and Group net income far higher than last year

The core businesses reported a 10 percent improvement in EBIT to €486 million (H1 2003: €440 million). Group EBIT increased to €481 million in the first half (H1 2003: €428 million). Group net income rose considerably: including income from discontinued operations, it was up 72 percent year-on-year at €191 million at end-June 2004 (H1 2003: €111 million). Earnings per share rose from €0.54 to €0.93.

Cautiously optimistic outlook for the full year

Felcht: "We are cautiously optimistic about the outlook for the remainder of this fiscal year. We expect the global economic recovery to continue. However, the recent sharp hike in raw material costs will dampen EBIT momentum in the second half of the year." Overall, Degussa is sticking to its outlook for fiscal 2004 as a whole and expects the core businesses to report a slight rise in sales and EBIT.

Source: Degussa

K flex Coalescents
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