STINNES REPORTS STRONG GROWTH IN FISCAL 2000

STINNES REPORTS STRONG GROWTH IN FISCAL 2000

STINNES REPORTS STRONG GROWTH IN FISCAL 2000

   Stinnes AG, the German parent of air and sea forwarder Schenker and chemical logistics specialist Brenntag, said Thursday that its consolidated income after taxes and minority interests rose 53.9 percent to euro 150.6 million ($133.7 million).

   External sales rose 2.3 percent to a record euro 12 billion ($10.7 billion). Adjusting for sale of building materials unit company's external sales grew 16.3 percent to euro 11 billion ($9.8 billion). Stinnes also sold the Nassauer Hof hotel, one of its oldest investments.

   Besides those sales, Stinnes said the record sales growth was mainly due to the strong performance of the chemical division and Schenker's air and sea freight unit.

   Operating profit increased 11.9 percent to euro 201.8 million ($179.2 million).

   Stinnes divested of activities worth euro 2.3 billion ($2.0 billion) in sales in 2000. The company used proceeds from the sale of its building materials activities to acquire Holland Chemical International for Brenntag, its chemical logistics division. In all, Stinnes acquired activities in the past fiscal year that generate sales of euro 1.7 billion ($1.5 billion).

   'Following the strategic steps taking during the past year, Stinnes is now fully focused on its logistics competencies,' said Wulf Bernotat, Stinnes' chief executive officer. 'We are now active in three divisions: transportation, chemicals and materials.

   In Stinnes' transportation division, the external sales of subsidiary Schenker increased 14.7 percent to euro 6.0 billion ($5.3 billion). Earnings improvements were seen in the European land transportation unit and the air and sea freight unit. Overall, the transportation division's internal operating profit rose 11.7 percent to euro 100.2 million ($89.0 million).

   Since the integration of BTL, Schenker has had the largest land transportation network in Europe. It expanded its scope last year by adding logistics centers in Germany, Austria, Scandinavia, the Baltic countries and the Netherlands. Schenker's activities in the Asian region were expanded by establishing new companies and increasing stakes in China and Indonesia.

   Schenker last year agreed with Deutsche Bahn to establish a joint venture called Railog, which will develop logistics services for key European accounts. The combined road and rail transportation joint venture is expected to record sales volume of euro 200 million ($177.6 million).

   Sales in the chemical division increased 32.6 percent to euro 3.1 billion ($2.8 billion). Internal operating profit grew 5.8 percent to euro 75.4 million ($67.0 million). Besides HCI, Brenntag expanded its European market through acquisitions of Neuber GmbH and specialty chemicals distributor Julia/Parrera.

   Bernotat said Stinnes is off to a robust start in 2001. 'Our external sales have grown at double-digit rates, and our internal operating profit has shown a similarly encouraging development.'