FAG Kugelfischer Georg Schaefer AG (Germany) reported
flat third quarter 2001 sales and profitability, but which allowed
nine-month results to remain ahead of 2000.
Nine-month pretax profits for 2001 are up 20% over last year, to
€ 85 million (USD $76 million). Sales were up 2%, to € 1.7 billion.
Third quarter results are beginning to show the effects of a prolonged
worldwide manufacturing slowdown, however. While sales and profits were
flat, incoming orders have fallen 5.1% for the year - accelerating to a 12%
drop in the third quarter.
FAG says it still expects profits to be up by "double digits" over
2000, even with the slowing economic picture, as it manages costs to
be more in line with the downtrend in sales.
The company went on to say, "For the fourth quarter, FAG management expects a significant
weakening of the international business climate."
FAG is in the midst of being acquired by INA Holding, and the high costs of its five-week
battle against the takeover are expected to significantly impact fourth quarter
profitability.
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