Carl Schenck increases sales by 23 % to Euro 576.6 m and annual earnings by 27 % to Euro 27.4 m

05/02/2001

The Carl Schenck Group, leading international manufacturer of systems and equipment for the automation of manufacturing processes, of testing systems as a part of research and development programs (Schenck Pegasus) for process control (Schenck Process) and for balancing rotating parts and machinery (Schenck RoTec) has been able to increase sales to Euro 576.6 m in the year 2000 (+23 %; previous year: Euro 467.8 m). In 2000 Schenck reported its figures for the first time according to the Generally Accepted Accounting Principles (US-GAAP), the figures of the previous year have therefore been translated to be in compliance with US-GAAP format for comparison.

Earnings before taxes rose significantly to Euro 27.4 m (+ 27 %; previous year: Euro 21.5 m), net profit for the year stood at Euro 13.6 m (previous year: Euro 14.1 m). The slight decline in net profit for the year of - 3.5 % is due to the change to US-GAAP.

The overall result was increased more than proportionately by 58 % to Euro 22.3 m (previous year: Euro 14.1 m).

The stable growth trend in sales and overall result has been maintained.

All three corporate divisions delivered positive earnings contributions, with Schenck Pegasus accounting for the biggest earnings contribution, as already in the previous year.

The Supervisory Board confirmed the annual financial statement for 2000 in its meeting on 03.05.2001.

Against the backdrop of the positive development of sales, Schenck reported a moderate growth in headcount to 3,862 people (previous year: 3,814).

Proposed dividend: DM 7.50 per unit share (no par value)

The Board of Management and the Supervisory Board will propose payment of a dividend in the amount of DM 7.50 per no-par share (previous year: DM 7.50).

The profit for the year in excess of this shall be used to strengthen the equity base and to finance future growth in the enterprise.

Improvement of competitive edge

The companies consolidated for the first time in the fiscal year 2000, namely Interautomation (Canada) and Motorama (USA) have been integrated in the corporate division Testing and Automation Systems (Schenck Pegasus). Sales and earnings contributions achieved in 2000 are significantly positive, and presence in the North American market has been lastingly expanded.

In February 2001 Schenck Pegasus founded a joint venture company Schenck Ricardo Systems Ltd. together with the British company Ricardo plc, a global leader in the development of engines, transmissions and vehicles. As a result, Schenck can develop appropriate test bench technologies faster with more market focus, and thus strengthen its competitive edge.

Outlook 2001

Schenck is again planning a double-digit increase in earnings for 2001 also.In order to profit from the continuing trend towards outsourcing of engineering services in the automotive industry, Schenck will clearly expand its engineering activities by founding its own company, namely DS Engineering GmbH, together with the Dürr Group.

Important dates:

Financial Press Conference 17.05.2001Annual General Meeting 29.06.2001