Hoechst Sales Down 18% But HMR Pipeline Strong

German chemicals and pharmaceuticals giant Hoechst AG has posted an 18%fall in sales for the first half of 1998 to 22.7 billion Deutschemarks ($12.65 billion), with operating profit falling by the same margin to 1.85 billion marks. The declines are a result of increasing price pressure in industrial chemicals and greater competition caused by the Asian crisis, as well as generic competition and restructuring costs associated with the group's pharmaceutical arm, Hoechst Marion Roussel.

The results were in line with expectations for the first half of what Hoechst chief executive Jurgen Dormann says is a difficult year for the group as it transforms itself into a life sciences company. Mr Dormann told attendees at the group's half-year press conference in London that divestment of its industrial businesses is progressing well, although Hoechst has been criticized in certain circles for not divesting quickly enough. Nevertheless, Mr Dormann, who has the difficut task of balncing the wishes of the investment community with those of the workforce, says the group is "determined to exit the chemical business not later than the year 2000."

HMR Sales Slip 7% HMR reported net sales of 3.49 billion marks for the second quarter of 1998, a fall of 7% compared with the corresponding period last year, while operating profit declined 26% to 458 million marks, due in part to restructuring charges of 173 million marks in the period.