Pretax Profit At Degussa Rises 25%

In the first three months of 1997, Degussa of Germany achieved a rise of25% in its pretax profits to 233 million Deutschemarks ($137 million). The company said that the growth was driven by its businesses outside Germany. Group sales for the quarter were 7.2 billion marks, an increase of 5%.

Some analysts warned that the firm's growth was flattered by lower restructuring costs after provisions were made in 1996 for reorganization of its metals division, and the consolidation of its US acquisition, Muro Pharmaceuticals, reported the Financial Times. One analyst told the FT that the firm is doing well despite the weak economy in Germany, and has a strong business in the USA. The firm's share price slipped slightly after the announcement on profit-taking.