The diversified German industrial group Veba yesterday reported net profits for the six months to June 30 up 10.8% at $727m on revenue that rose 0.8% to $22.5bn. At the pre-tax level, profits were up 14.7% at $1.49bn. However, as the group pointed out, the pre-tax figure was swelled by book gains of $438m from a series of divestments carried out during the period. Adjusting for these gains, restructuring costs of $187m, particularly at silicon wafer facility MEMC, and a full consolidation of one of its subsidiaries for the first time, the group actually showed a pre-tax profit down 9.1%. MEMC
was the area where the group most suffered last year, in fact, the unit having undergone a substantial deterioration of its earnings due to increased price pressure, particularly as a result of the Asian crisis, the group said. Meanwhile, sales in the groupÆs telecoms division, ie the Otelo operation, were up 19.7% to $82m, but the division ended the year with a loss due to a slow start-up in fixed telephony.
