Mannesmann AG, the German engineering and technology group, came roaring out of recession with a hefty 1994 profit and plans to raise its dividend. It gave preliminary figures showing a 1994 group operating profit equivalent to $407.1m compared with a loss of $87.6m in 1993. Mannesmann attributed the turnaround of more than $490m to economic recovery and first-time profits from its mobile telephone division. Group sales rose 9% to $20,967m and incoming orders rose 19% to $23,046m. As a result of improved earnings, Mannesmann said it would propose raising its dividend to $4.14. The telecommunications business experienced a near doubling of turnover, which increased 93% to $1,207.5m. The company’s cellular phone network, D2, gained 350,000 new connections in 1994 to bring the total of users to over 840,000 at the end of 1994. The start-up losses in the telecommunications division are a thing of the past, it said, adding that the division made a considerable contribution to profits. Telecommunications will remain the focus of Mannesmann’s investment, which rose by 13% to $2,001m in 1994. Telecommunications took around 45% of this sum. Sales in the automotive technology division rose 12% to $4,623m amd the electronics division also swung into profit. The steel tube and pipe division was able to cut losses because of higher volumes, lower costs and improved business at the Mannesmann do Brasil SA division. Mannesmann’s shares initially rose in Frankfurt on the dividend news, but later drifted lower, in line with the general trend, ending 0.12% down at $292.56.
