More "no comment" stuff: Dow Jones Newswires -- May 19, 1998
Hoechst: No Comment On Report Of DEM3.70 EPS In '98>G.HFA
FRANKFURT (Dow Jones)--German pharmaceutical and chemical
holding firm Hoechst AG (G.HFA) said Tuesday it won't comment on a
report which said its chairman expects Hoechst to post per-share earnings
of DEM3.70 in 1998.
A DEM3.70 per-share earning would amount to a 19% rise over the
DEM3.15 per-share earning posted in 1997, according to an advance copy
of Wednesday's edition of German weekly economic magazine Capital.
The Hoechst spokesman said it's company policy not to comment on
forecasts of such sort.
The Capital article refers to a secret supervisory board plan as the source
of its information.
According to the financial plan, Hoechst could post an additional profit of
more than DEM100 million in 1998 if the dollar averages around DEM1.80
this year. Hoechst's financial plan for 1998 is based on an average dollar
rate of DEM1.70, the magazine reported.
Capital also reported that the plan said Hoechst intends to increase its cash
flow to DEM5.6 billion in 1998 after it fell to DEM3.5 billion in 1997. A
DEM5.6 billion cash flow would be at the same level as in 1996.
The spokesman confirmed that Chairman Juergen Dormann's current
five-year term expires April 1999 and that his contract's extension be
discussed at Hoechst's supervisory board meeting June 9.
According to the magazine, the supervisory board is considering a two-year
extension of Dormann's contract. -By Uta
Harnischfeger;49-69-25616500;uharnischfeg@ap.org
Hoechst AG (G.HFA) is a major international group of companies that
supply healthcare, agricultural and industrial chemical sectors.
Headquarters: 65926 Frankfurt am Main, Germany
Significant Developments: In May 1997, Hoechst stockholders approved
the transformation of Hoechst AG into a strategic management holding
company. Under this plan, all business operations and service units will
become independently run subsidiaries.
In February 1998, Hoechst said operating profit in 1997 fell to DEM3.7
billion from 4.0 billion in 1996. However, excluding special items, operating
profit in 1997 rose to DEM4.2 billion from DEM3.5 billion in 1996, it said.
The group also said the increase in 1997 sales was mainly due to favorable
exchange rate movements.
In March 1998, Hoechst Chairman Dormann said 1998 operating profit
will remain flat at the 1997 level of DEM3.65 billion. Due to continued
restructuring, 1998 sales will drop to range between DEM40 billion and
DEM45 billion, he added.
In May, Hoechst said its 1998 first quarter net profit was largely flat on the
year, rising to DEM360 million from DEM359 million a year earlier.
Hoechst cited the Asian economic downturn as having particular impact on
its industrial businesses, although it said prospects for its agricultural unit are
improving due to "strong demand."
It also reiterated its plan to expand its life science activities and further shed
its industrial chemicals business, but nonetheless forecast a "difficult year"
for 1998 due to more restructuring, price cuts in Japan, and competitive
pressures.
All figures are in Deutsche marks and are rounded:
Year To Year To Year To
12/31/97 12/31/96 12/31/95
Grp Pretax Profit 3.16 bln a 5.15 bln 4.09 bln
Grp Net Profit 1.34 bln 2.11 bln 2.25 bln
Grp Sales 52.10 bln 50.93 bln 52.2 bln
Annual Dividend 1.50 1.40 1.30
EPS (DVFA/SG) 3.10 2.75 2.40
a. Adjusted for restructuring.
Currency History (Deutsche mark vs dollar)
12/31/97 12/31/96 12/29/95
Frankfurt Fix 1.7921 1.5548 1.4335 |
