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News > International
Mannesmann profits soar
January 7, 2000: 4:49 a.m. ET

German firm's earnings jump 37%; Vodafone bid looms
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LONDON (CNNfn) - Mannesmann bolstered its defense against the hostile takeover approach from Vodafone AirTouch Friday, unveiling strong growth in earnings for 1999.
    Duesseldorf-based Mannesmann reported a 22 percent increase in revenue to 23.2 billion euros ($24 billion) while underlying earnings jumped 37 percent to 4.3 billion euros. The firm's telecom activities boasted a 70 percent gain in earnings to 2.2 billion euros. Recently-acquired Orange contributed a net 100 million euro deficit due to write-offs associated with the financing of the $36 billion deal. Pretax profit rose 8 percent to 1.4 billion euros.
    Chairman Klaus Esser claimed "another year of quite extraordinary success" for Mannesmann’s telecom business, which signed up 70 percent more cellular subscribers in 1999. The rest of the firm's profit came from the engineering and automotive unit, which is due to be spun off this year.
    Mannesmann (FMMN) stock reacted brightly to the numbers, gaining 2 percent to 214 euros in Frankfurt, although they remain well below the value of Vodafone's $126 billion all-stock offer, currently worth 236 euros per share.
    The company's net profit, not released at this preliminary stage, will be lower than in 1998 - as previously announced - due to an increase in the  tax rate.
    Underlying earnings exclude interest, taxes, depreciation and amortization. Back to top

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

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Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.