PLANSEE continues expansion course

The PLANSEE group, located in Reutte (Austria) was able to continue its expansion course in the business year 2003/04, concluded on February 29. Consolidated sales increased by eight per cent to 571 million euro. “If the exchange rates had remained the same as in the previous year, the turnover would even have been raised by twelve per cent“, says Dr. Michael Schwarzkopf, Chairman of the Executive Board on the occasion of a press conference in Reutte.
Dr. Schwarzkopf is particularly satisfied, “as the external factors such as the Iraq war, terror attacks and the lung disease SARS made business definitely difficult“. Once again, the growth drivers were the automotive and electronics industry as well as lighting technology. While a business revival in America was only witnessed towards the end of 2003, PLANSEE benefited mainly from the good economic situation in Asia. The increased sales in Europe, and specially in Germany, also result from the strong demand in the East-Asian markets.

Satisfactory earnings

Schwarzkopf is satisfied with the annual earnings, particularly when considering the unfavourable performance of the euro compared to US-dollar and yen as well as the increased raw material and energy prices.
Furthermore, the earnings performance reflects the continuous investments in the internationalisation of the group and the development of new products. The equity ratio increased to 57 per cent.
At the end of the last fiscal year the consolidated group had a total of 4.340 employees (previous year: 4.275). The worldwide employment at all group companies - not reflecting the share participation - increased by 110, and now amounts to 6.420 persons. 30 per cent of the worldwide employees work in Austria.

76 million euro for capex and innovation

PLANSEE maintained its high level of investments of the previous years. In the business year 2003/04, 76 million euro or 13 per cent of sales were invested in new production sites, fixed assets as well as product and process development.

The internationalisation process of the SINTERSTAHL group was particularly driven forward. The new American SINTERSTAHL Corp. in Philipsburg, Pennsylvania, started operation in February this year; the inauguration of SINTERSTAHL Asturias S.A. took place in Spain at the beginning of this week, after having doubled its production through an investment of 13 million euro.
The parent companies in Reutte (Austria) also benefit from the focused investment program. After completing the modernisation of the rod and wire production line through a total investment of 20 million euro, a new production site is planned for the finishing of carbide rods during 2004.

52 companies worldwide

Due to the foundation of PLANSEE China Ltd. in Hong Kong and PLANSEE Korea Co. Ltd. in Seoul, PLANSEE is now represented by 52 companies in 18 countries worldwide. The group’s presence in Asia was also strengthened by the majority share takeover of Japan Vacs Metal Co. Ltd. in Tokyo.

One year CERATIZIT

The first complete business year of CERATIZIT was a successful one according to the Chairman of the Executive Board. The division CERATIZIT was created through the merger of the Luxembourg Cerametal and the Reutte based PLANSEE TIZIT. The integration was accomplished smoothly, and the strategic expectations have been fulfilled. Dr. Schwarzkopf states: “In this manner the carbide division has reached the critical size which is necessary in the global business“.

Forecast: “Carefully optimistic“

According to Dr. Schwarzkopf the first quarter of the business year has been concluded successfully. “The strong interest in our products results from the booming economy in China and the electronics industry“. The head of the PLANSEE group however is careful when referring to future development. “From the present point of view we expect the demand to stabilise at a high level“.
With its three company divisions, PLANSEE High Performance Materials, CERATIZIT and SINTERSTAHL, PLANSEE is one of the leading producers of powder-metallurgical products. The non-consolidated market turnover amounts to 750 million euro.