Despite the sell-off of its DEM 90m polymer and moulding compound business in mid 1997, Phoenix AG (PO Box 900854, D-21048 Hamburg) still expects to achieve growth of 1 to 2% in 1998. Planned investments relate primarily to core business and to the continued construction and expansion of locations abroad, particularly in Eastern Europe.

In financial year 1997, the group succeeded in increasing its sales by more than 5% to around DEM 1.53bn. Adjusted for the plastics activities sold, sales growth totalled 12 percent, the company said. The increase in sales and various cost-reducing measuresed to an "above-average increase in pretax earnings",and the pretax operating result improved by more than 40%.

In the strongest business field, "Vibracoustic" (insulation systems for vibration and sound), sales increased by 10.2% to DEM 566.9m. According to Phoenix, this has enabled it to further consolidate its position as leading supplier of complete acoustic solutions. The company views the acquisition by subsidiary Stankiewcz GmbH (D-29205 Celle) of UK-based Supra Acoustics Ltd. at the start of the year as the "ideal addition to the overall product range". Supra counts as the market leader for bitumen-based damping sheet for the automotive sector in Britain and recorded sales of some DEM 20m in 1997, with a payroll of 135.

READER SERVICE: Detailed economic press releases on the course of business in 1997 (German): PIE-No. 41949.