Hoechst Strong In South Africa: EPS Forecast Up

The first interim report of Hoechst SA since its successful listing on the South African stock exchange (Marketletter May 22) on July 12 1995, shows a 67% increase in total operating profits to 51.2 million rand ($14 million) for the six months to June 1995.

The group was well positioned to benefit from improved trading conditions, which prevailed during the period under review in virtually all of its operations, resulting in this increase. Based on this performance, the earnings per share forecast for 1995 has been revised to 41.3 cents, up from 37.7 cents in actual EPS last year.

For comparative purposes, the prospectus stated 1994 pro forma EPS of 32.8 cents. In accordance with Johannesburg Stock Exchange requirements, this figure had been adjusted for discontinued operations during the statutory five-year period. Based on this pro forma EPS of 32.8 cents, the increase would have been 25.9%.