Degussa is adjusting its earnings forecast to reflect altered business condition

30.10.2001, 07:58

In view of the sharp deterioration in market trends in recent weeks and the sustained weak economic situation, Degussa AG is altering its earnings forecast for fiscal 2001 as follows: Contrary to original expectations, operating earnings before interest, income taxes and amortization of goodwill (EBITA) for the Degussa Group will be slightly lower than in the previous fiscal year. Earnings before income taxes (operating result) for the Degussa Group will be considerably lower than in the previous fiscal year.

The Degussa Group will be taking the following action in response to these trends:

• The restructuring drive introduced at the time of the merger will be stepped up. In addition to reducing the headcount by 3,000, it now looks as though a further 1,000 jobs will have to be shed.
• Introduction of short-time working in three plants.
• Temporary closure of six plants in Germany and abroad.
• Earlier than planned shutdown of eight unprofitable plants.
• A drastic cut in investments.
• Further steps to reduce personnel expenses in the short term, for example less overtime and temporary reductions in working hours.

Degussa AG will be publishing a detailed interim report on the first nine months of this year on November 12, 2001.