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

German firm's earnings jump 37%; Vodafone bid looms
graphic
graphic graphic
graphic
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 Mannesmannís 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

  RELATED STORIES

Vodafone launches $138B Mannesmann bid - Dec. 23 , 1999

EU clears Mannesmann buy - Dec. 21 , 1999

  RELATED SITES

Mannesmann

Vodafone AirTouch


Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney




graphic

Market indexes 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. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.
Market indexes 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. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.