Altana Delivers Dynamic 1st Half-Year 2006

Altana AG has increased first-half consolidated sales in 2006 by 24% to €1.93 billion. This growth is due to the good operating performance of Altana Pharma and Altana Chemie.

The acquisition of the Eckart Group also contributed to this development. Adjusted for currency and acquisition/divestment effects, operating sales increased by 10%.

"Our first half-year performance provides impressive confirmation that we are on the way to achieving our ambitious growth goals set for the whole of 2006," commented Dr. Nikolaus Schweickart, President and CEO of Altana AG.

Good growth rates were achieved in international markets, in particular €1.6 billion of the total sales were generated outside Germany.

This is equivalent to an increase of 28% on the prior year and a foreign sales share of 84%. Domestic sales in the first half-year amounted to €305 million, up 10% on the prior year’s figure.

Particularly strong growth figures were achieved in the market regions of North America, where sales increased by 39% to €592 million; in Latin America, with an increase in sales of 36% to €197 million, and Asia, with sales up by 37% to €188 million.

European sales outside Germany climbed by 15% to €622 million. Altana’s earnings before taxes (EBT) rose by 8% to €382 million.

This growth rate was influenced by a special effect: Earnings before taxes (EBT) in the second quarter of 2006 comprise a one-time expense amounting to €25 million for the redemption of various employee incentive programs due to the intended restructuring of the Group.

Excluding this special effect, earnings before taxes (EBT) grew by 16%. First-half operating earnings measured in terms of EBITDA totaled €466 million, 14% more than in the prior year; EBIT amounted to €379 million, up 9% on the prior year, and first-half net income totaled €244 million, up 11% on the prior year’s figure.

The operating return (EBITDA) was 24.1% in the first half of 2006. The return on sales before taxes (EBT) was 19.8%. Earnings per share (EPS) rose by 11% to €1.79.

In the period under review, Altana’s capital expenditure on property, plant and equipment and on intangible assets rose by 42% to €93 million.

The company’s research expenses grew by 14% to €245 million. As of June 30, 2006, ALTANA employed about 13,500 people worldwide, an increase of 21% on the first half of 2005, mostly due to acquisitions.

Of the total workforce, about 6,400 were employed in Germany and about 7,000 abroad.