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Mannesmann Sachs Reports Results

17 August 1998

Mannesmann Sachs Still in the Fast Lane; New Record Highs for Workforce, Sales, Profit and Investments

    DUSSELDORF, Germany, Aug. 17 -- Mannesmann Sachs,
Schweinfurt, one of the world's leading automotive components suppliers, again
outpaced the automotive market as a whole in the first half-year 1998.  Sales
totalled DM 2,210 m, and thus rose by 15 percent after adjustment for the
engine production discontinued last year and the sale of the bicycle
components business to a new record mid-year high.  All business units, in
particular drive train and chassis components, Boge rubber-metal parts and
Stabilus gas springs and Sachs trading products participated in the growth.
    Foreign sales, which now account for 60 percent of total sales continued
to show above-average growth.  During the same period, the number of employees
worldwide increased by 16 percent to 20,094, essentially due to the inclusion
of the newly acquired Aralmex S.A. (Guadalajara, Mexico, shock absorber
production) and the joint venture Eagle-Picher-Boge LLC, USA.  Moreover, the
production of converters began at Sachs Slovakia.
    The development of earnings was also satisfactory.  At DM 164 m, the
mid-year results significantly topped that of the previous year (DM 81 m).
At DM 263 m, investments were up by 95 percent against the same period a year
ago.  Order intake points to a continuation of the high growth rate in the
second half-year, although slightly reduced from the pace of the first
6 months 1998.