ALTANA AG: 10th Record Year in Succession.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 -- 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. )(FWB (Fixed Wireless Broadband) See fixed wireless. :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. )(GER GER German/Germany GER Gastroesophageal Reflux GER Geriatrics GER General Education Requirement GER Great Eastern Railway (UK) GER Gross Enrollment Ratio (education) GER Gain Electrons Reduction :ALT): --Double-digit growth in sales and earnings --10th dividend increase planned --Excellent starting base for the strategic future development of ALTANA's divisions (Note: All figures mentioned in this press release are provisional and unaudited.) ALTANA AG (NYSE:AAA)(FWB:ALT)(GER:ALT) passed the 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. 3 billion sales mark in the 2005 business year for the first time, and consolidated sales rose by 10% to EUR 3.3 billion. Adjusted for exchange rate, divestment divestment to strip one's investment from an entity. and acquisition effects, ALTANA achieved an operating sales growth of 8%. "With its tenth record year in succession ALTANA further continued its impressive success story. The extraordinary dynamic development with a substantial double-digit growth in earnings of ALTANA Pharma on the one hand and the sustained high operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before level of ALTANA Chemie on the other are an excellent starting base for the strategic future development of the ALTANA Group", explained Dr. Nikolaus Schweickart, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of ALTANA AG. Sales growth in all regions At EUR 2.7 billion, international business accounts for 82% of total sales. This is an increase of 9% on the prior year. Sales growth differs significantly by region: In the European markets outside Germany, ALTANA achieved sales of EUR 1,092 million, an increase of 8%. The development of the domestic business was satisfying: In Germany, ALTANA achieved sales of EUR 580 million, 18% up on the prior year. In 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. , ALTANA reported sales of EUR 927 million, 5% up on the prior year. Also due to exchange rate effects, sales in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. grew by 18% to EUR 328 million. Sales in Asia grew by 14% to EUR 285 million. Increased investment and R&D expenses In 2005, ALTANA's capital expenditure on property, plant and equipment and on 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 EUR 244 million. ALTANA's total R&D expenses amounted to EUR 466 million, the larger part of which (EUR 419 million) was attributable to ALTANA Pharma. ALTANA Chemie invested EUR 47 million in the development of new products. ALTANA Pharma invested 20% of therapeutics sales in research; the research ratio of ALTANA Chemie was 5%. On an international comparison, these ratios rank among the highest and are proof of both divisions' strong orientation towards innovation. New jobs As of December 31, 2005, ALTANA employed about 13,300 people worldwide, which is equivalent to an increase of 23%. This increase is mainly due to the acquisition of the ECKART group in the Chemicals division. Even without acquisitions, the number of employees rose by 2% in Germany and by 6% abroad on a Group level. Of the total workforce about 6,350 have been employed in Germany, and about 6,950 abroad. Over the last ten years (1995 - 2005), the number of employees rose from 7,136 to more than 13,000. Further jobs will be added during the current year. ALTANA Pharma with 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. ALTANA Pharma AG, Constance, achieved sales of almost EUR 2.4 billion in 2005, corresponding to an increase of 12%. Adjusted for exchange rate effects, operating sales climbed by 10%. International business grew by 11% to reach EUR 1.9 billion. Domestic sales developed with an especially dynamic pace: they amounted to EUR 439 million, 18% up on the prior year. Sales in the European markets outside Germany also increased significantly by 15% to EUR 780 million. With EUR 770 million the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. region achieved an increase of 3%. Latin America reported an increase of 19% to EUR 279 million. International business accounted for 81% of total sales. ALTANA Pharma further expanded its strategic core business, Therapeutics, achieving sales of EUR 2.1 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, . In 2005, the main sales driver Pantoprazole (Pantozol(R)/Protonix(R)), a drug for the treatment of acid-induced gastrointestinal diseases gastrointestinal disease, n an abnormal state or function of the GI system. , again achieved double-digit growth in worldwide market sales, all sales partners included: they rose to EUR 2.8 billion, an increase of 12%. ALTANA's own sales of Pantoprazole climbed to almost EUR 1.4 billion, also up 12% on the prior year's figure. Alvesco(R), the inhaled in·hale v. in·haled, in·hal·ing, in·hales v.tr. 1. To draw (air or smoke, for example) into the lungs by breathing; inspire. 2. corticosteroid corticosteroid /cor·ti·co·ster·oid/ (-ster´oid) any of the steroids elaborated by the adrenal cortex (excluding the sex hormones) or any synthetic equivalents; divided into two major groups, the glucocorticoids and with novel release and distribution properties resulting in lung-targeted anti-inflammatory effects, achieved sales of EUR 8 million. In 2005, the drug was first launched in the U.K., which served as a reference country for the European approval process. Alvesco(R) has already been approved in 34 countries; it is now in the market in 15 countries. Further market launches are planned during the current year. ALTANA Chemie achieves focused growth prospects ALTANA Chemie AG, Wesel, managed an increase in sales to EUR 907 million in 2005, a rise of 6% on the prior year. This development was influenced by targeted divestments and acquisitions. Adjusted for exchange rate and divestment as well as acquisition effects, operating growth was 3%. At EUR 141 million, domestic sales were up 18% on the prior year - mainly due to acquisitions. Foreign sales rose by 4% to reach EUR 766 million. Regional growth rates are heavily influenced by portfolio adjustments: In Europe (excluding Germany), the effects from the divestments in the Coatings & Sealants division are stronger than the effects from the acquisition of ECKART, so that sales are down 7% on the prior year to EUR 312 million. In the other regions acquisitions had positive effects: In North America sales grew by 20% to reach almost EUR 157 million; in Asia by 10% to EUR 214 million; and in the other regions by 13% to EUR 83 million. International business accounted for 84% of total sales. With EUR 364 million, the largest sales driver was the Additives & Instruments division (+4%), followed by the 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 division with EUR 293 million (+1%). With EUR 175 million, sales in the Coatings & Sealants division were down by 19% on the prior year's figure, mainly due to divestments. Adjusted for acquisition and divestment effects, the Coatings & Sealants division achieved a growth of 5%. The Effect Pigments division (ECKART Group), which has been consolidated since October 1, 2005, contributed EUR 75 million to total sales. ALTANA Chemie's purchase of the ECKART Group in 2005 represented the largest acquisition in the ALTANA Group's history to date. Within the framework of the strategic realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. of its Coatings & Sealants division, ALTANA Chemie concluded the divestment of activities in the non-strategic industrial coatings An industrial coating is a paint or coating defined by its protective, rather than its aesthetic properties, although it can provide both. The most common use of industrial coatings is for corrosion control of steel or concrete. area; in October, the company acquired Kelstar, a leading manufacturer of overprint o·ver·print tr.v. o·ver·print·ed, o·ver·print·ing, o·ver·prints To imprint over with something more, especially to print over with another color. n. 1. A mark or impression made by overprinting. coatings for paper and cardboard packaging. Hence, ALTANA Chemie has taken the first important step to expand its activities in the area of flexible packaging. With its divestments and acquisitions, ALTANA Chemie has focused its product portfolio on internationally high-ranking specialty businesses and has created an excellent basis for the company's future growth. Significant growth in earnings and dividend increase ALTANA will achieve a double-digit growth in earnings before taxes (EBT EBT See: Earnings Before Taxes ) for 2005 as a whole. An earnings volume of about EUR 680 million is anticipated. At a level of about 21%, the expected return Expected Return The average of a probability distribution of possible returns, calculated by using the following formula: on sales (EBT) of the Group should again be substantially above the market average. The same holds true for the anticipated operating returns (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) of both divisions: ALTANA Pharma about 29%, ALTANA Chemie about 18%. "As in previous years, our shareholders will fully participate in the positive earnings development. We therefore intend to propose another double-digit dividend increase at the Annual General Meeting, the tenth in succession. For the first time, the total dividend payment will be higher than the nominal capital of EUR 140 million - significantly higher", stated Dr. Nikolaus Schweickart. Outlook 2006 ALTANA's dynamic business trend will further continue in 2006. Investments in the future growth of ALTANA - in the form of capital expenditure as well as research and development expenses - will be maintained at high levels. The strategic future development of the ALTANA Group will be in the focus in 2006. In order to achieve this, we announced to take two elementary steps: to open ALTANA Pharma for a strategic partner - here we are evaluating all options -, and to prepare the independent operation of ALTANA Chemie as a listed company listed company n → compañía cotizable listed company n → société cotée en Bourse listed company list n → on the stock exchange.
Key figures 2005
ALTANA Group 2005(1) 2004 Change
in %
Sales (in EUR million) 3,272 2,963 +10
Germany 580 491 +18
Abroad 2,692 2,472 +9
ALTANA Pharma 2,365 2,109 +12
ALTANA Chemie 907 854 +6
Number of employees (Dec. 31) 13,276 10,783 +23
Germany 6,341 4,958 +28
Abroad 6,935 5,825 +19
ALTANA Pharma 8,832 8,200 +8
ALTANA Chemie 4,384 2,521 +74
Capital expenditure (property, plant,
equipment and intangible assets, in EUR
million) 244 226 +8
thereof property, plant and equipment 153 183 -17
intangible assets 91 43 +112
ALTANA Pharma 201 165 +21
ALTANA Chemie 42 60 -29
R&D expenses (in EUR million) 466 448(2) +4
ALTANA Pharma 419 410 +2
ALTANA Chemie 47 38 +24
1) Provisional data
2) After adjustment according to IFRS 2 "Share-based payments"
Dates ALTANA will report in detail on the earnings development and the 2005 annual financial statements at the press conference and the analyst meeting on March 16, 2006, in Bad Homburg. The first quarter results will be published on April 27, 2006, combined with a conference call. The ALTANA Annual General Meeting will take place on May 2, 2006, at the CongressCenter Messe 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 revenues and results for the year 2005 and projections for an increase in dividends, for a continuing dynamic business trend, for maintained investments in the future growth, plans for further market launches of Alvesco(R) and statements regarding the future strategic development of the ALTANA Group. 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, regulatory decisions of the competent authorities, 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. Furthermore, they include the possibility to make acquisitions, to acquire product rights and to find an appropriate strategic partner for the pharmaceutical division. 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 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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