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Carl Schenck sees good opportunities for its corporate division Process Systems

07/19/2000

• Positive business development after successful restructurization
• Schenck Process is benefiting from increasing capital investments in important market areas
• Incoming orders well above plan and previous year level

Carl Schenck AG, the holding company of the Carl Schenck-Group, sees good prospects for a positive business development of the Schenck corporate division Schenck Process Systems. Given this background, the Schenck Board of Management is no longer considering the sale of this corporate division with its lead company Schenck Process GmbH, an option which had been examined in the restructurization phase.

After a prolonged unsatisfactory development of earnings, Schenck Process now again has the capacities for profitable growth under the aegis of the Schenck Group. Schenck Process is, for instance, benefiting from the economic upswing in important market areas such as the cement and steel industry. This is verified by the positive development in the current business year, with incoming orders well above plan and previous year level.

The company also has additional growth potentials in its most important markets thanks to innovative new developments in the area of weighing and dosing systems, among other industries also in the chemical industry. The acquisition of a majority stake in the Schenck Group by Dürr AG, Stuttgart, in April also opens up new business opportunities for Schenck Process. The Dürr Group is, for instance, interested in high-quality solutions developed by Schenck Process in the area of paint finishing and environmental systems.

Another point to the merit of Schenck Process, besides the good economic prospects, is that the company has successfully finalized its restructurization program, in the course of which business processes and the product spectrum were optimized by a consistent response to market requirements. In the fiscal year 2000, Schenck Process is expected to account for about euro 125 m of sales of the Schenck Group, thus achieving a return on sales of over 5%.

Frank Haun, spokesman of the Board of Management of Carl Schenck AG, summarizes the prospects of Schenck Process as follows: "The sale of Schenck Process has now definitely been given up. Schenck Process has good opportunities, both in its traditional markets as well as in its future interplay with Dürr. Thanks to a positive development of business, the company will contribute to the success of the Schenck Group under rate of return aspects."