ALTANA 2003: New Record Year; the Eighth in Succession.Business Editors/Health/Medical Writers BAD HOMBURG Bad Hom·burg A city of west-central Germany at the foot of the Taunus Mountains near Frankfurt. It is a famous spa and resort. Population: 53,200. , Germany--(BUSINESS WIRE)--Jan. 27, 2004 - Profits climb by 10% and sales by 5% despite weak dollar; another dividend increase targeted (Note: All figures mentioned in this press release are provisional Temporary; not permanent. Tentative, contingent, preliminary. A provisional civil service appointment is a temporary position that fills a vacancy until a test can be properly administered and statutory requirements can be fulfilled to make a permanent appointment. and unaudited) ALTANA AG (NYSE NYSE See: New York Stock Exchange : AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. , FSE FSE 1. feline spongiform encephalopathy. 2. focal symmetrical encephalomalacia. : ALT (character) alt - /awlt/ 1. The alt modifier key on many keyboards, including the IBM PC. On some keyboards and operating systems, (but not the IBM PC) the alt key sets bit 7 of the character generated. See bucky bits. 2. ), Bad Homburg, reported further unabated un·a·bat·ed adj. Sustaining an original intensity or maintaining full force with no decrease: an unabated windstorm; a battle fought with unabated violence. growth in 2003. Consolidated sales rose by 5% to achieve a new record high at EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 2.73 billion (2002: EUR2.61 billion). Adjusted for exchange rate and acquisition effects, operating sales increased by 12% in 2003. Sales revenues were particularly affected by the weak U.S. $, so that the double-digit growth rate in local currencies (+11%) translates as a single-digit value (+5%) when expressed in EUR. "ALTANA successfully sustained its long-term forward growth throughout 2003. Our operating business is progressing well, generating double-digit growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. as in past years. However, a strong Euro slowed down growth in sales and profits. And yet we have still managed to increase profitability by a double-digit figure for the eighth time in succession - the result of a long-term oriented o·ri·ent n. 1. Orient The countries of Asia, especially of eastern Asia. 2. a. The luster characteristic of a pearl of high quality. b. A pearl having exceptional luster. 3. corporate policy", commented Dr. Nikolaus Schweickart, Chairman of the Management Board of ALTANA AG. Strong international growth Foreign subsidiaries and exports to third parties generated around 82% (2002: 81%) of total sales. International sales as a whole amounted to EUR2.25 billion, up 6% on the previous year's figure. North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. again reported the highest growth rate (10%), with sales totaling EUR857 million (2002: EUR779 million). European sales (excluding Germany) climbed 8% to EUR904 million (2002: EUR834 million). Domestic sales were down 2% to EUR481 million (2002: EUR490 million). Investment and R&D expenditure maintained at high levels Investment (property, plant, equipment and intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. ) totaled EUR237 million in 2003 (2002: EUR225 million). The investment ratio climbed to a high 9% as a result. ALTANA will continue to invest large sums for Research and Development to ensure the future of the business. ALTANA's total R&D expenditure amounted to EUR412 million (2002: EUR369 million), the larger part of which (EUR375 million) was attributable to ALTANA Pharma (2002: EUR335 million). This means the research ratio is now 19%. Research spending also rose at ALTANA Chemie: at EUR37 million (2002: EUR34 million), this expenditure is now equivalent to 5% of Divisional sales. New jobs ALTANA passed the 10,000 employee mark in 2003. At the end of the year, it employed around 10,400 people around the world, which is equivalent to an increase of 5% (2002: 9,853). Against the economic trend, ALTANA again created new jobs in Germany (+8%) and abroad (+4%). ALTANA now employs around 4,800 people in Germany and around 5,600 internationally. Further new jobs are planned in Germany and abroad during the current year. ALTANA Pharma achieves sales of nearly EUR2 billion ALTANA Pharma AG, Constance, reported global sales of EUR1.98 billion for 2003, an increase of 6% (2002: EUR1.86 billion). Adjusted for exchange rate effects, there was substantial double-digit growth in operating sales, which climbed by 13%. Domestic sales fell by 4% to EUR375 million (2002: EUR390 million) as a result of the mandatory 6% rebate rebate, partial refund of the total price paid for goods or services. In the United States, rebates were historically given by railroads to favored shippers as a return on transportation charges. that now applies on innovative drugs in Germany. On the other hand, international business grew by 9% to reach EUR1.6 billion (2002: EUR1.5 billion). International revenues now account for 81% of total sales, i.e. two percentage points ahead of the previous year. ALTANA Pharma further expanded its strategic core business, Therapeutics therapeutics Treatment and care to combat disease or alleviate pain or injury. Its tools include drugs, surgery, radiation therapy, mechanical devices, diet, and psychiatry. , achieving sales of EUR1.7 billion (2002: EUR1.6 billion) with prescription drugs prescription drug Prescription medication Pharmacology An FDA-approved drug which must, by federal law or regulation, be dispensed only pursuant to a prescription–eg, finished dose form and active ingredients subject to the provisos of the Federal Food, Drug, . This is equivalent to an 87% share of total pharmaceutical sales (2002: 84%). The top product and No. 1 sales driver is Pantoprazole (Pantozol(R)/Protonix(R)), an innovative gastrointestinal drug that has achieved uninterrupted growth. Worldwide market sales of Pantoprazole - all sales partners included - rose to EUR2.35 billion in 2003, an increase of 17% (2002: EUR2.0 billion). ALTANA's own sales of Pantoprazole climbed to EUR1.1 billion, up 15% on the previous year's figure (2002: nearly EUR1 billion). Wyeth, our American sales partner, recorded sales of EUR1.3 billion with Protonix(R), an increase of 17% (2002: EUR1.1 billion). Growth in sales in U.S. $ totals 40%. The Protonix(R) market share of PPI (1) (Pixels Per Inch) The measurement of the resolution of a monitor or scanner. For example, a monitor that is 16 inches wide and displays 1600 pixels across its width would have a resolution of 100 ppi (1600 divided by 16). prescriptions in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. rose above 20% for the first time in early 2004. We expect to see Pantoprazole achieve further double-digit prescription growth during 2004. The sales growth curve is, however, slowly starting to flatten out Verb 1. flatten out - become flat or flatter; "The landscape flattened" flatten change form, change shape, deform - assume a different shape or form splat - flatten on impact; "The snowballs splatted on the trees" due to the market situation, the sales volumes already achieved (EUR2.35 billion) and the impact of exchange rate effects. Expressed in EUR, ALTANA therefore anticipates high single-digit to modest double-digit growth in net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight . Approval applications for Alvesco(R) in the United States and Japan Aventis, our partner in the United States, applied to the FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. for approval of the asthma drug Alvesco(R) (Ciclesonide) at the end of 2003. Teijin, the cooperation partner for the Japanese market, has submitted an application for approval for Alvesco(R) at the end of January 2004. The cooperation agreement with Teijin was signed in 1998 for marketing Alvesco(R) in Japan. Our subsidiary, ALTANA Pharma K.K., also commenced operations in Japan at the beginning of the year. ALTANA Chemie with robust business Despite a difficult economic environment, ALTANA Chemie AG, Wesel, managed an increase in sales to EUR755 million in 2003, a rise of 1% (2002: EUR748 million). Whilst the negative impact of exchange rate effects held sales revenues down by as much as 5%, acquisitions accounted for a 3% increase. These acquisitions include, in particular, the takeover of Schenectady International's Electrical Insulation Electrical insulation A nonconducting material that provides electric isolation of two parts at different voltages. To accomplish this, an insulator must meet two primary requirements: it must have an electrical resistivity and a dielectric strength business, the Division's biggest acquisition to date. Adjusted for exchange rate and acquisition effects, operating growth at ALTANA Chemie was up by 3%. At EUR106 million, domestic sales were up 7% on the previous year (2002: EUR100 million). Foreign sales totaled EUR649 million, around the same level as last year (2002: EUR648 million). International business accounts for 86% of total sales (2002: 87%). The largest sales driver was the Additives & Instruments business unit with EUR308 million (2002: EUR304 million), followed by Electrical Insulation with EUR225 million (2002: EUR223 million) and Coatings & Sealants with EUR222 million (2002: EUR221 million). Growth in profits and dividend increase ALTANA expects to close 2003 with an increase of about 10% in consolidated pre-tax profit (EBT EBT See: Earnings Before Taxes ). Given that consolidated profit has risen more sharply than sales (5%), the return on sales Return on sales A measurement of operational efficiency equalingnet pre-tax profits divided by net sales expressed as a percentage. return on sales The portion of each dollar of sales that a firm is able to turn into income. will climb to over 21% to a new record level. A higher tax rate (approx. 42%) means that profit after tax (EAT) will increase by 3 to 5%. "As in previous years, our shareholders will share fully in the positive profit trend. We therefore intend to propose another dividend increase at the Annual General Meeting, the eighth in succession", commented Dr. Nikolaus Schweickart. Outlook 2004 Growth in sales and profit will continue in 2004. The extent of such growth will depend to a large degree on exchange rate developments. Investment and, in particular, research expenditure will be maintained at high levels. Key figures 2003
ALTANA Group 20031) 2002 Change
in %
Sales (in EUR million) 2,734 2,609 + 5
Germany 481 490 - 2
Abroad 2,253 2,119 + 6
ALTANA Pharma 1,979 1,861 + 6
ALTANA Chemie 755 748 + 1
Number of employees (Dec. 31) 10,386 9,853 + 5
Germany 4,816 4,478 + 8
Abroad 5,570 5,375 + 4
ALTANA Pharma 7,702 7,504 + 3
ALTANA Chemie 2,618 2,299 + 14
Investment (property, plant, equipment and
intangible assets, in EUR million) 237 225 + 5
ALTANA Pharma 140 147 - 4
ALTANA Chemie 86 65 + 31
R&D Expenditure (in EUR million) 412 369 + 12
ALTANA Pharma 375 335 + 12
ALTANA Chemie 37 34 + 8
(1) Provisional data Dates ALTANA will report in detail on its profit development and the 2003 annual financial statements at the Press Conference and the Analyst Meeting on March 18, 2004 in Bad Homburg. The First Quarter Results will be published on April 29, 2004 combined with a Conference Call. The ALTANA Annual General Meeting will take place on May 5, 2004 at the CongressCenter Messe in Frankfurt. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , i.e., current estimates or expectations of future events or future results. The forward-looking statements appearing in this press release include unaudited results for the year 2003 as well as revenue and earnings projections for the year 2004 for the ALTANA Group, projections for an increase in dividends and market sales projections for Pantoprazole. These statements are based on beliefs of ALTANA's management as well as assumptions made by and information currently available to ALTANA. Many factors that ALTANA is unable to predict with accuracy could cause ALTANA's actual results, performance or achievements to be materially different from those that may be expressed or implied by such forward-looking statements. These factors include the exchange rate of the Euro to foreign currencies, ALTANA's ability to develop and launch new and innovative pharmaceutical and chemical products, price regulations for pharmaceuticals and budgeting decisions of local governments and health care providers, the level of ALTANA's investment in pharmaceuticals related R&D, the sales and marketing methods used by ALTANA to distribute its pharmaceuticals, the composition of ALTANA's pharmaceuticals portfolio, ALTANA's ability to maintain close ties with its chemicals customers, the business cycles experienced by ALTANA's chemicals customers and the prices of the raw materials used in ALTANA's chemicals business. Forward-looking statements speak only as of the date they are made. ALTANA does not intend, and does not assume any obligation, to update forward-looking statements to reflect facts, circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or or events that have occurred or changed after such statements have been made.. This press release is also available on the Internet at www.altana.com. |
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