Atecs--New Name for the Mannesmann Technology Divisions
2 March 2000
Atecs
* New Name for the Mannesmann Technology Divisions
* Further Growth in 2000
* IPO in June
DUESSELDORF, Germany, March 2 -- Atecs will be the new name
for Mannesmann's Engineering & Automotive divisions, and stands for Advanced
Technologies. In the future, the world market leaders Rexroth, Dematic, Demag
Krauss-Maffei, VDO and Sachs will operate under this common umbrella. The
first appearance of the new entity will be on March 21, 2000 at the Hanover
Fair.
In June 2000, Atecs will go public as a new technology stock. Atecs will
reflect Mannesmann's pioneering and inventive spirit as well as the future
potential of its technologies. Atecs products provide an important basis for
today's mobility and information society in many areas such as in-car
information technology, CD production machines and logistics for airports and
e-commerce applications.
Atecs will combine in one stock the five established market leaders of
Mannesmann's technology divisions. The goal will be to develop their
excellent market positions for the benefit of all: for customers through
product innovation and comprehensive service, for staff as an attractive
employer and for the Atecs shareholder through any corresponding value
increase.
Atecs IPO in June 2000
The IPO of Atecs is scheduled for June 2000. The plan is for the majority
of the capital to be floated on the stock market. Subscription to the new
Atecs stock will commence in mid-May. Further details concerning the IPO will
be disclosed on March 21, 2000.
Thanks to its extraordinary potential, Atecs Mannesmann AG is seen as the
most likely candidate for addition to the DAX 30 Index.
Sights set on growth and leadership in the world market
During the last few years, the divisions of Atecs have been strengthened
significantly through a process of ongoing dynamic portfolio optimisation.
They have focused on their core businesses and on growth areas, implementing
over 40 divestments (sales volume approx. euro 3.8 billion) and more than
30 acquisitions (sales volume approx. euro 1.6 billion). The Atecs portfolio
has grown at an average rate of 13% per year since 1995. As a result, it is
now in an outstanding position in terms of innovative strength, market share
and cost leadership.
The new entity is the world market leader in the fields of Hydraulics,
Material Handling and Injection Moulding Machines, and in the automotive
segments of Cockpit Systems, Instrumentation and Gas Springs. Atecs is also
extremely well positioned in many other innovative and growing segments thanks
to continuous research and development activities with over 700 new inventions
in 1999 alone. With outstanding product innovations and renowned brand names,
market share in the world markets should be steadily expanded. In addition,
the strong focus on the less cyclical aftermarket will secure the positive
development of earnings and further growth.
The future development of Atecs will be on the basis of the Value
Increased Process, a value-driven management philosophy that stands for growth
and value enhancement. The companies in the Atecs Group will build on the
considerable experience in global competition and the competence of the
existing management team.
Further growth in 2000
The Atecs divisions have had a very good start to 2000. Orders received
and sales in the first months were up significantly against the previous year.
The development of business in the Systems business unit of Dematic has
been outstanding. In the US, two major contracts have already been won for
e-commerce fulfilment centres with a total value of about euro 50 million.
British customers have given an undertaking for three large orders with a
volume totalling over euro 100 million. Mannesmann Plastics Machinery also
reported a very good development, thanks largely to its position in rapidly
expanding market segments (optical discs and PET). Due to remarkable orders
in the fields of Information-, Cockpit-, and Fuel Systems as well as Control
Systems, VDO exceeded previous year's level.
Atecs expects a significant increase in 2000 from the previous year's
figures for orders received, sales and earnings. Dematic anticipates
above-average growth. Demag Krauss-Maffei is continuing to concentrate its
portfolio on core business areas. VDO expects above-average growth in
Navigation and integrated Multi Media Systems in 2000.
The divisions of Atecs Mannesmann AG achieved world-wide sales of about
euro 12 billion in 1999 and employed 90,000 people. With more than euro
400 million, result from ordinary activities in 1999 slightly exceeded
previous year's level.
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