Heraeus Group Announces Growth in Revenues and Earnings Despite Softening of Key Markets
In the first six months of 2001, Heraeus Holding GmbH, the worldwide precious metal and technology group, increased its total revenues by 15% over the comparable period in 2000 to € 4.1 billion. In the same period, earnings before interest, taxes and amortization (EBITA) increased by 7.9% from € 126 million to € 136 million in a comparable presentation. (EBITA for the first six months of 2000 including Heraeus Tenevo AG: € 155 million). Worldwide, the group employed 9,698 persons as of June 30, 2001 (up 6% from June 30, 2000). Of this number, 5,106 or 53% were employed outside Germany.
Not including the influence of precious metals trading (€3.0 billion, +16.5%), the group succeeded in posting a 11% increase in revenues to just under € 1.1 billion in the first six months of 2001. Adjusted for the effect of precious metals prices, product revenues excluding precious metals increased just under 10% in comparison to the first six months of 2000. Almost all group divisions contributed to this gratifying growth in revenues and consolidated earnings.
Since Heraeus Tenevo AG was spun off from the Heraeus Group with retroactive effect from January 1, 2001, the figures for 2000 have been correspondingly adjusted to achieve comparability.
"We are pleased that, despite the global softening in some key markets, we were able to attain distinct revenue and earnings growth," said Dr. Horst Heidsieck, President and CEO of Heraeus Holding GmbH. "In addition to the good trading business, the precious metals unit, W. C. Heraeus profited in particular from strong growth in the chemicals and materials technology divisions. For the rest of the year, however, we expect a decline in the products business due to the persistent softness in the semiconductor, electronics, steel and automotive industries. However, our diversified product portfolio in constant and dynamic markets makes us prepared for such cyclical developments."
"The first half of 2001 was gratifying. However, the present soft world market situation will affect the further business development. Therefore, as we see things today, the group revenues and operating result in the second half of 2001 will be below the figures for the first six months," said Dr. Dieter Truxius, member of the Board of Management and Chief Financial Officer of Heraeus Holding GmbH. Accordingly, a cooling of business activity was recorded as early as the second quarter of 2001.
The first six months of 2001 saw a number of changes in the group structure.
Heraeus Tenevo AG, the former fiber optic products division of Heraeus Quarzglas GmbH & Co KG was spun off from the Heraeus Group retroactively to January 1, 2001 according to plan. The Heraeus stakeholders now hold the shares in Heraeus Tenevo AG directly through a financial holding company. Outside investors hold a 15% interest in the company. Heraeus employees hold 5%. The spin-off safeguards the financing of the necessary expansion of the company's production capacity. At the same time, it frees up resources within the Heraeus Group for the expansion and investment activities of other group divisions.
Heraeus Noblelight GmbH, also originally a company of Heraeus Quarzglas GmbH und Co KG, became an independent managing company of the Heraeus Group as of January 1, 2001. This move is intended to directly support the successful market and technology leader for special light sources in the expansion of its activities as part of the group.
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