D-Mark Strength Affects Altana's 1995 Growth

Turbulence on currency markets has affected growth in the German pharmaceuticals and chemical group Altana AG. Chairman Klaus Schweickart said that the strength of the Deutschemark was already impacting on the company's growth targets for 1995.

Investment in the pharmaceuticals and baby-foods sector would also affect profits this year, Mr Schweickart added. Profits in the first quarter of 1995 have remained stable at a high level, he said, but the company will incur heavy spending in the second quarter on a new gastrointestinal product.

If the present currency situation continues unchanged, planned sales growth of 7% to about 3 billion marks ($2.19 billion) will only be achieved with great difficulty, and at present the prospect is for growth of just 3%-4%. Altana reported sales of 2.8 billion marks last year, with profits after tax of 100 million marks (compared with 86 million marks for 1993).