Südzucker International Finance B. V. Südzucker AG ... - Xetra

Change in operating profitin D million1987/881988/891989/901990/911991/921992/931993/941994/951995/961996/971997/981998/991999/2000 3292000/012001/0235671111622352562212152422592793083924652002/03 520AGRANA subsidiaries in eastern Europe werepositively affected by changing the financial year toa uniform twelve months to February 28.return on capital employed (ROCE) of the special productssegment of 16.0 % comfortably exceeded 10.9% for the sugar segment.Expenses from restructuring and exceptional items ofD 33 million (D 3 million) mainly relate to provisionsin connection with the sale of AW-Fresenius sharesin 2001/02, required due to the decrease in theFresenius AG share price. The sale of part of theinvestment in KWS, reducing the holding fromalmost 25 % to nearly 10 %, helped to reduce thesecosts. Scheduled amortisation of goodwill increasedby D 43 million to D 73 million (D 30 million)following the first-time inclusion of SLS.Financial results improved by D 3 million to netexpense of D 41 million (D 44 million). Thedeterioration of D 9 million in net interest expenseto D 70 million (D 61 million) was more than offset bya sharp improvement of D 12 million in investmentincome to D 29 million (D 17 million), mainly fromSLS investments. The effective income tax rate couldbe reduced to 15.6 % (27.6 %), with a drop in theBelgian tax rate from 40.2 % to 34.0 % and tax-freegains arising from one-time effects being responsiblefor the decrease of D 49 million in income taxexpense to D 58 million (D 107 million).The special products segment achieved a growth of33.4 % in operating profits to D 123 million (in theprevious year excluding Schöller: D 93 million).This segment thus meanwhile contributes almost aquarter of group turnover and profits. The increasein profits was achieved both through targetedacquisitions, particularly with the purchase of RemyIndustries in the ORAFTI division, as well ascontinued internal growth in all divisions making upthe special products segment. The operating marginfor this segment overtook the sugar segment for thefirst time, at 12.0 % (sugar segment: 11.8 %). TheGroup net earnings after tax, which rose by 12.2 %,or D 34 million, from D 281 million to D 315 million,reflect the full integration of the SLS Group, whichwas completed in 2002/03.Earnings per share rose to D 1.52 (D 1.45); thisdemonstrated once again that there was no earningsdilution, despite the additional shares issued inconnection with the capital increase. On the contrary,Südzucker Group’s earnings power has actually risen.F-51