GEA Group AG

Regulatory Filings • Oct 2, 2003

News Details

Ad-hoc | 2 October 2003 14:40

mg technologies AG english

mg technologies ag: Strategic Focus On Engineering Ad-hoc-announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– FRANKFURT AM MAIN, October 2, 2003 – The Executive Board of mg technologies ag, a leading global technology group until now focused on two core businesses in engineering and chemicals, has today announced a major corporate repositioning following a meeting of its Supervisory Board. Acting upon the recommendations of a full strategic review which was initiated in June of this year, the Executive Board under the direction of Udo G. Stark, the Chief Executive Officer, will immediately start to implement these agreed upon measures: – The positioning of mg technologies ag as a company committed to engineering, specialising in process technology and components, with an especially strong position as a supplier to the food, pharmaceuticals and petrochemical industries. At the core will be GEA AG which ranks as a global leader in these markets. – A strengthening of the balance sheet, based on the divestment of the group’s chemicals businesses comprised of Dynamit Nobel AG and solvadis ag, to provide the new mg technologies ag with a sound basis for future expansion via organic growth and acquisitions. – A streamlining of industrial plant engineering with the companies Lurgi, Lurgi Lentjes and Zimmer to return all of the industrial plant engineering activities rapidly to profitability. This will necessitate a reduction in total capacity. Break-even levels will in particular be lowered at Lurgi Lentjes and Lurgi. – The generation of cost-savings through a realignment of the group’s current corporate structure with the new strategy. For the current fiscal year, however, mg technologies ag will report one-time effects as well as holding and other costs still incurred in 2003 that will result in a pre-tax loss of approximately Euros 150 to 170 million. mg technologies ag is convinced that a clear focus on process technology and components offers the best conditions for sustainable profitable growth. end of ad-hoc-announcement (c)DGAP 02.10.2003 ——————————————————————————– WKN: 660200; ISIN: DE0006602006; Index: MDAX Listed: Amtlicher Markt in Berlin-Bremen, Düsseldorf, Frankfurt (Prime Standard), Hamburg und München; Freiverkehr in Hannover und Stuttgart 021440 Okt 03