Sales to the automobile industry, accounting for some 90% of business, continued to drive Dynamit Nobel Kunststoff (DN, D-53840 Troisdorf; www.dynamit-nobel.com) in financial 1999-2000 (30 September). Brisk sales of moulded parts for new cars and trucks boosted turnover by 22% to EUR 159m, including the EUR 30m contributed by the compounding activities of DSM Resins acquired by subsidiary Menzolit-Fibron. Earnings rose more than 66% to EUR 48m, and the return on sales climbed to nearly 6% from 4% in 1998-1999.

Jörg Deisel, who took over as chairman from Fritz Lehnen in August of this year, defended his company´s returns on its plastics business – which were lower than the 9% return showed by the Dynamit Nobel group as a whole. He noted that the moulder´s performance was better than that of many other automotive suppliers. However, he suggested that there is still scope for improvement. Unspecified measures to improve productivity and profitability are planned.

As new car orders boomed, DN´s strategic business unit thermoplastics was able to operate its plants at full capacity during the past financial year. A “drastic decline” in new car registrations in Germany was more than compensated by improved export activity. Models supplied, including the Mercedes “S” and “E” classes and the Audi A6, have met with strong consumer acceptance, said the new chairman.

DN was especially pleased with the performance of its foreign subsidiaries in 1999-2000. While Dynamit Nobel Iberica profited from the good Spanish automobile economy, the successful launch of the new Smart Cabrio resulted in improved capacity utilisation at the Hambach, France, plant where Dynamit Nobel France carries out injection moulding and coating of the Smart´s hang-on customised body panels directly at the manufacturer´s production site. Deisel said DN will continue to build its moulding plants close to the assembly plants of automotive customers.