LIGHT AT THE END OF THE TUNNEL FOR HOECHST?

Although Germany's Hoechst group reported a 41.8% slump in pretax profits for 1993 on flat sales (Marketletter March 14), the company sees "light at the end of the tunnel," in terms of expected 1994 performance. At its annual spring press conference last week, Hoechst's outgoing chairman, Wolfgang Hilger, told journalists that in the first two months, sales were up by 5% over the like, year-earlier period.

Sales growth in Germany was zero, but there was a 9% rise in exports in these first two months, he said, adding that while this sales development was encouraging, there is unfortunately no upwards movement yet discernible in prices. In Germany, he noted, prices are still 5% below the previous year's level.

1993 Pharma Business Good Hoechst's health care business (predominantly pharmaceuticals, although its cosmetics operations - with turnover of some 1.32 billion marks - are included in the figures) contributed 11.26 billion Deutschemarks ($6.66 billion) to total group sales of 46.05 billion marks, a rise of 4.1% over the previous year. However, sales in Germany declined 4% to 1.9 billion marks, while sales abroad improved. Nevertheless, operating profit declined 9.8% to 1.14 billion marks, particularly as a result of weak developments in Germany and the USA.