DEGUSSA-HÜLS
Merged company starts business as earnings dip / Asian slump blamed / Vinnolit deal soon?
The newly merged Degussa-Hüls AG (D-60287 Frankfurt) started trading on an unexpectedly sour note. Pretax earnings in the first quarter of financial year 1998-99 (October-December 1998) dropped 26% against the pro forma period of 1997/98 to DEM 181m, chairman Uwe-Ernst Bufe said at the company´s stock market debut. Sales totalled DEM 20bn, excluding intake from precious metals trading.
Along with the Asian crisis, which negatively impacted demand in Q4 1998, deputy chairman Klaus Albrecht pointed to software conversion problems and slack demand at the former Hüls AG acrylics subsidiary Röhm GmbH (D-64275 Darmstadt) in December 1998. The month was shortened in preparation for the merger with Degussa MMA/ PMMA subsidiary Agomer GmbH. MMA price declines also affected the integrated acrylics producer.
In view of the economic slowdown in important customer markets, Bufe said plans are to accelerate an already planned rationalisation scheme at Röhm, to integrate the Agomer businesses as well as concentrate on higher valued products. Following a portfolio management conference in March, Degussa-Hüls is expected to announce plans to merge its PVC producer Vestolit GmbH (D-45753 Marl) with Vinnolit Kunststoff GmbH (Carl Zeiss Ring 25, D-85737 Ismaning). Vinnolit is currently a 50:50 joint venture of Hoechst (D-65926 Frankfurt) and its 50% subsidiary Wacker Chemie (Hanns-Seidel Platz 4, D- 81737 Munich).
Degussa-Hüls stock market press release: PIE-No. 43457.
Along with the Asian crisis, which negatively impacted demand in Q4 1998, deputy chairman Klaus Albrecht pointed to software conversion problems and slack demand at the former Hüls AG acrylics subsidiary Röhm GmbH (D-64275 Darmstadt) in December 1998. The month was shortened in preparation for the merger with Degussa MMA/ PMMA subsidiary Agomer GmbH. MMA price declines also affected the integrated acrylics producer.
In view of the economic slowdown in important customer markets, Bufe said plans are to accelerate an already planned rationalisation scheme at Röhm, to integrate the Agomer businesses as well as concentrate on higher valued products. Following a portfolio management conference in March, Degussa-Hüls is expected to announce plans to merge its PVC producer Vestolit GmbH (D-45753 Marl) with Vinnolit Kunststoff GmbH (Carl Zeiss Ring 25, D-85737 Ismaning). Vinnolit is currently a 50:50 joint venture of Hoechst (D-65926 Frankfurt) and its 50% subsidiary Wacker Chemie (Hanns-Seidel Platz 4, D- 81737 Munich).
Degussa-Hüls stock market press release: PIE-No. 43457.
28.02.1999 Plasteurope.com [18177]
Published on 28.02.1999