Schering Upbeat On 1997 Following Strength In 1996

In Schering AG's 1996 annual report the firm predicted that in 1997group sales would be around 5.9 billion Deutschemarks ($3.5 billion), rising 11%. Klaus Pohle, vice chairman and chief financial officer at Schering, said in London that after the first two months of the year, this forecast has been increased to sales of 6 billion marks, an increase of 14% on the previous year, and that earnings will achieve double-digit growth, "and by this I mean between 10%-15% to between 410-430 million marks," he added. Schering's R&D spend in 1997 will go over 1 billion marks for the first time, representing 19% of sales.

Speaking to trade journalists, Professor Pohle said that in the first two months of 1997 Schering AG had experienced sales growth of 23%. Of this, 4% was due to the foreign currency effect, 9% was a result of the consolidation of the acqusiitions made last year, and 10% was growth by old Schering.

Prof Pohle's optimism stems from the strengthened position achieved by the company in 1996. Group profits grew 46% to 362 million marks, operating profits were up 7% to 588 million marks, which includes a charge of 60 million marks for restructuring towards implementing ongoing efficiency programs and measures related to the acquisition of the Finnish company, Leiras, and a majority holding in Jenapharm. And sales growth was 13% to 5.27 billion marks. Jenapharm and Leiras contributed 149 million marks to Schering's total sales in 1996. These two acqusitions strengthen Schering's hormone therapy portfolio, which is its biggest growth driver, and will supply new products in the coming years.