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ALTANA Delivers Excellent 1st Quarter 2006.


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:

--Significant double-digit growth: Sales +28%, Net Income +25%

--Optimistic outlook for 2006 confirmed

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) increased consolidated sales by 28% to 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.
 948 million in the first quarter of 2006. This growth was generated by, in particular, the acquisition of the ECKART Group in the previous year, and encouragingly strong development in the pharmaceuticals and chemicals businesses. Adjusted for acquisition/divestment and currency effects, operating sales increased by 12%. "Our first-quarter performance provides impressive confirmation that ALTANA is on the way to another record year in 2006, our eleventh in succession," commented 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.

EUR 789 million of the total sales were generated outside Germany, which is equivalent to a foreign business share of 83%. Domestic sales amounted to EUR 159 million, up 14% on the same period of the previous year. European sales outside Germany climbed by 16% to EUR 306 million. Double-digit sales growth (+43%) to

EUR 278 million was also recorded 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. . The good performance in Asia continued with growth of 37% to EUR 92 million.

At EUR 229 million (2005: EUR 180 million), the operating profit Operating profit (or loss)

Revenue from a firm's regular activities less costs and expenses and before income deductions.


operating profit

See operating income.
 figure 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 , was substantially higher than in the previous year. EBIT EBIT

See: Earnings Before Interest and Taxes


EBIT

See earnings before interest and taxes (EBIT).
 rose by 23% to EUR 185 million (2005: EUR 150 million). Earnings before taxes (EBT EBT

See: Earnings Before Taxes
) also totaled EUR 185 million, +22% more than in 2005 (EUR 152 million). First-quarter net income amounted to EUR 118 million (2005: EUR 94 million), up 25% on the previous year's figure.

The operating return (EBITDA) was 24.2% in the first quarter of 2006. 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.
 before taxes (EBT) was 19.5%. Earnings per share rose by 24% to EUR 0.87.

As of March 31, 2006, ALTANA employed about 13,400 people worldwide, an increase of 25% on the same period in the previous year. Disregarding exceptional effects, some 500 new jobs were created worldwide.

ALTANA Pharma: Dynamic development

ALTANA Pharma AG, Constance, increased its sales by 17% to EUR 624 million in the first quarter of 2006.

The core 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.
 business reported growth in sales of 18% to EUR 539 million. Despite higher investment in R&D and the high costs associated with the market launch of Alvesco(R), ALTANA Pharma succeeded in increasing first-quarter earnings before taxes (EBT) by 19% to EUR 156 million. At 25%, the return on sales before taxes (EBT) reached another record value. The operating return (EBITDA) was 29%.

Gastro franchise

Pantoprazole (Pantozol(R)/Protonix(R)), the innovative gastrointestinal drug, continues to deliver strong growth. ALTANA Pharma's own sales of Pantoprazole totaled EUR 361 million, which translates as an increase of 18%. Worldwide market sales, all sales partners included, were up 22% to EUR 765 million in the first three months of 2006. Europe (excluding Germany) saw continued growth with Pantoprazole (+19%). Sales in Germany fell 13% below last year's level due to the strong first-quarter results achieved in 2005 and the initial impact of the government-imposed cost-cutting measures. Market sales of US$482 million (+18%) were achieved in the U.S. market. Pantoprazole's share in total prescriptions in the proton pump inhibitor proton pump inhibitor
n.
A class of drugs that inhibit gastric acid secretion by interfering with the movement of hydrogen ions across cell membranes and are used mainly to treat peptic ulcers, gastroesophageal reflux disease, and esophagitis.
 market in the U.S. was about 20% at the end of March 2006.

Respiratory franchise

ALTANA Pharma achieved a total sales volume of EUR 19 million with respiratory drugs in the first quarter of 2006. Sales of Alvesco(R) (Ciclesonide) totaled EUR 3.4 million. This innovative 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  inhaler inhaler /in·hal·er/ (in-hal´er)
1. an apparatus for administering vapor or volatilized medications by inhalation.

2. ventilator (2).


in·hal·er
n.
 for the treatment of asthma is now approved in 37 markets and has been launched in 18. Further market launches are planned this year.

In February 2006, the indication of Alvesco(R) was extended to treat persistent asthma in adolescent patients aged 12 years and older. National marketing licenses will follow on the basis of the European Mutual Recognition Variation Procedure. New Drug Applications for OMNAIR(TM), a nasal spray Nasal sprays are used for the nasal delivery of a drug or drugs, generally to alleviate cold or allergy symptoms such as nasal congestion. Although delivery methods vary, most nasal sprays function by instilling a fine mist into the nostril by action of a hand-operated pump  with Ciclesonide for treating Allergic Rhinitis Allergic Rhinitis Definition

Allergic rhinitis, more commonly referred to as hay fever, is an inflammation of the nasal passages caused by allergic reaction to airborne substances.
, were filed in the USA and Canada.

ALTANA Chemie: Strong growth in sales in every division

ALTANA Chemie AG, Wesel, achieved sales of EUR 324 million in the first quarter of 2006. This represents a 56% increase on the previous year, mainly due to acquisitions. Even when adjusted for exchange rate as well as acquisition and divestment divestment to strip one's investment from an entity.  effects, ALTANA Chemie achieved an operating growth of 10% driven by a substantial revival in worldwide demand.

All four divisions of ALTANA Chemie contributed to the good first-quarter results. Sales in the largest division, Additives & Instruments, climbed by 14% to EUR 103 million. 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
 reported sales of just under EUR 84 million, up 15% on the previous year. The Coatings & Sealants division achieved an acquisition-driven 26% increase in sales, which reached EUR 55 million, with a 7% increase in operating growth. Effect Pigments (ECKART), the new fourth division consolidated as of October 1, 2005, contributed EUR 82 million to total first-quarter sales, which is equivalent to a double-digit increase in operating sales on last year.

In the first quarter of 2006 ALTANA Chemie improved operating profit (EBITDA) by 57%, which was slightly higher than the growth in sales. This growth in earnings, which was achieved in spite of exceptional expenditure associated with restructuring measures, was mainly fuelled by the earnings contribution from the new division, Effect Pigments, and the improvement in profitability generated by the portfolio measures implemented in Coatings & Sealants. At EUR 37 million, earnings before taxes (EBT) were 39% up on the past year in spite of high acquisition-related depreciation; the return on sales was 11.6%. The operating return measured in terms of EBITDA was 18.5%, an excellent figure in an international comparison of the specialty chemicals A Specialty chemical is a chemical produced for a specialized use. They are produced in lower volume than bulk chemicals, of which petrochemicals, made from oil feedstocks, are the most common. However, both are produced in a chemical plant.  sector.

ALTANA Chemie's product portfolio is focused on high-value international specialty businesses and provides an excellent basis for further growth. The continuing successful integration of ECKART will yield a positive contribution to earnings in 2006, despite all the acquisition-related costs. With last year's completion of the portfolio adjustments in the Coatings & Sealants division started two years ago, ALTANA Chemie is now in a position to further expand its flexible packagings business, including paper coatings in particular.

ALTANA: Outlook for record year 2006 confirmed

We expect our dynamic business performance to continue in 2006. At Group level, we anticipate growth in sales of about 20% with a business volume of just under EUR 4 billion. Earnings (EBT) are expected to be some 8-10% higher than last year in spite of high expenditure on Research & Development, as well as on Marketing & Sales.

Both divisions expect double-digit growth in sales - ALTANA Pharma should achieve sales growth in the range of 12-14% whilst the acquisition-influenced figure for ALTANA Chemie should be substantially in excess of 30%. Earnings before taxes (EBT) are expected to grow between 8-10% thanks to good business development at ALTANA Pharma. Pantoprazole looks set to provide growth in own sales in the clear double-digit percent range whilst worldwide market sales, all sales partners included, are expected to be in the high single-digit percent range. Growth in operating profit (EBITDA) at ALTANA Chemie will develop in line with sales.

The process on the long-term development of the two divisions is underway. We strive to implement both processes this year, and will provide information in due course.

Key figures 1st Quarter 2006
ALTANA Group                           January    January    Change
                                        to         to
                                        March      March
                                        2006       2005

                                        in EUR     in EUR     in %
                                        million    million

Sales                                      948        741     + 28

Earnings before interest, taxes,
 depreciation and amortization
 (EBITDA)                                  229        180     + 27

Earnings before interest and taxes
 (EBIT)                                    185        150     + 23

Earnings before taxes (EBT)                185        152     + 22

Return on sales (EBT) in %                19.5       20.5

Net income (EAT)                           118         94     + 25

Earnings per share in EUR                 0.87       0.70     + 24

Number of employees (March 31)          13,436     10,759     + 25


There will be a conference call for analysts today, April 27, at 2 p.m. More information about the audio webcast, this press release and the Quarterly Report is available at www.altana.com.

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.
. The forward-looking statements appearing in this press release include revenue and earnings projections for the ALTANA Group, the ALTANA Pharma and ALTANA Chemie Divisions, the drug Pantoprazole and information about ALTANA's plans regarding further market launches of Alvesco(R) as well as the aimed implementation of processes for the long-term development of both divisions. 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 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 or events that have occurred or changed after such statements have been made.
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Publication:Business Wire
Date:Apr 27, 2006
Words:1576
Previous Article:Siemens to Acquire Diagnostic Products Corporation; Siemens Medical Solutions Enters the In-Vitro Diagnostics Market.
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