FAG Kugelfischer Georg Schaefer AG (Germany) reported first half 2002 earnings off sharply on near-flat sales.

Sales were up 1.9% in the first half of 2002, to € 1.15 billion, over first half 2001.

Net income, however, fell by over 35%, to only € 28 million, from € 43 million for the first half of 2001.

FAG's order backlog fell to € 846 million (4.4 months), while new orders rose a modest 1.6% to € 1.18 billion.

The company commented that the first half results were strongly impacted by the economic situation across all sectors, and slow industrial equipment sales in particular.

FAG has been acquired by INA Holding Schaeffler KG (Germany) and is in the process of being absorbed into INA. INA, privately held, currently holds over 95% of FAG's outstanding shares and has indicated it will try to force FAG's holdout shareholders to sell.

Until recently, INA had offered to keep FAG's remaining shareholders, with certain valuation and dividends in place. Now, however, INA has signaled its willingness, under a new German law, to force the minority holdout shareholders to sell. Acquiring the final few shares, "will allow us to improve cooperation with our colleagues at FAG and to make the most of our biggest combined potential future," said the company.