28 May 1998: The Mainz-based Schott group, a special glass producer owned by the Carl-Zeiss Foundation, has reported strong turnover and earnings growth for the first half of the 1997/98 (30 September…
28 May 1998: The Mainz-based Schott group, a special glass producer owned by the Carl-Zeiss Foundation, has reported strong turnover and earnings growth for the first half of the 1997/98 (30 September) financial year. At a recent conference in New York, where the US holding company is based, board spokesman Helmut Fahlbusch said the current financial year would again be record-breaking. First half turnover at the German unit climbed 8% to DM 1.535 billion. Growth of this order is targeted full year, which would bring annual turnover to over DM 3 billion for the first time. The operating result improved to 8% of turnover, according to Fahlbusch, which is equivalent around DM 123 million. He said the full-year operating result will be over DM 200 million which would see Schott exceeding its target 6% rate of return. The group“s foreign units lifted six-month turnover by 15%, against the 7% achieved by the German members, and were also ahead regarding the rate of return. However, the domestic units have caught up following heavy investment and productivity gains. Having contributed only 26% of group operating profits in 1996/97 with a 65% share of production, the German parts of the group contributed 42% of group earnings with a 61% share of production in first half 1997/98. Fahlbusch says that at 4% of turnover in Germany, operating earnings were double those of 1996/97. He believes the 6% goal will be reached in Germany within a year or two. He claims domestic production has regained competitiveness and is again attractive. However, he fears this success will be threatened if a tax on energy consumption is imposed in the form of an “ecotax”. Fahlbusch is also keen to see further internationalisation, according to reports. Expansion through acquisitions is planned in the US, and Fahlbusch said there are several willing partners. Talks are in progress with some of them. Fahlbusch said he hopes that by 2002, 15% of Schott turnover will be achieved in Asia.