euro adhoc: Schering AG / Quarterly or Semiannual Financial Statements / Sales and earnings burdened by currency effects in second quarter (E)

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Berlin, July 31, 2003 - Schering AG, Germany (FSE: SCH, NYSE: SHR) announced today that net sales of the Schering AG Group were EUR2.338 billion, 8% less compared to the previous year. The further strengthening of the euro against the U.S. dollar and the yen in the second quarter of 2003 had a negative impact on the development of net sales. Adjusted for currency effects, net sales increased by 3% in the first six months of 2003. Operating profit was 6% down on the figure for the first six months of 2002.

"In fiscal year 2003, we anticipate a solid growth in net sales for the Schering AG Group. Due to the negative impact of exchange rates we anticipate that earnings in the full year 2003 will be below previous year’s level. Because of the unfavorable exchange rate environment as well as further burdens through national cost containment measures especially in Germany, we will take further steps to align our cost structure. This will result in a reduction of around 300 jobs in Germany already this year", said Dr. Hubertus Erlen, CEO and Chairman of the Executive Board of Schering AG. "Our long-term strategic goals are not affected by this situation. The competitiveness of our existing products as well as the many promising drug candidates will contribute to realize these targets."

Particularly net sales of Yasmin® (+120%), Mirena® (+26%) and Magnevist® (+6%) increased after adjusting for currency effects. Sales growth of Betaferon® was burdened by non-recurring effects in the second quarter. For the full year, net sales of Betaferon® are expected to grow in the double-digit range in local currencies.

Negative exchange-rate effects on operating profit were partially offset by profits from currency hedges as well as a reduction of operating costs. Excluding one-time effects in the previous year, in particular the sale of our interest in Aventis CropScience, net profit decreased by 10% from EUR279m to EUR250m.

Half year 2003 Basic figures (year-on-year):

  • Net sales: EUR 2,338 million; +3% (after adjusting for currency effects); -8% (overall)
  • Gross profit: EUR 1,760 million; -8%
  • R&D costs: EUR 435 million; -3%
  • Operating profit: EUR 374 million; -6%
  • Net profit: EUR 250 million; -10%*
  • EPS basic: EUR 1.28; -9%*
  • Cash flow: EUR 382 million; +3%
  • Number of employees: 26,628 (average); +3%

*percentage change adjusted for one-time effects, in particular sale of the interest in Aventis CropScience

Second Quarter 2003 Basic figures (year-on-year):

  • Net sales: EUR 1,179 million; +1% (after adjusting for currency effects); -9% (overall)
  • Gross profit: EUR 874 million; -10%
  • R&D costs: EUR 219 million; -4%
  • Operating profit: EUR 163 million; -12%
  • Net profit: EUR 123 million; -11%*
  • EPS basic: EUR 0.63; -10%*
  • Cash flow: EUR 187 million; +10%
  • Number of employees: 26,628 (average first half year 2003); +3%

*percentage change adjusted for one-time effects, in particular sale of the interest in Aventis CropScience

An analyst conference call will be held and audio webcast on our website today, July 31, 2003, at 10.30 hours CET.

Schering will publish its Interim Report for the first nine months on October 27, 2003.

Further inquiry note:
Oliver Renner
Tel: +49(0)30 468 1111
FAX: +49(0)30 468 15305
Email: -

Emittent: Schering AG Müllerstrasse 178 DE-13353 Berlin Tel: +49(0)30 468 1111 FAX: +49(0)30 468 15305 Email: - WWW: ISIN: DE0007172009 WKN: 717200 Indizes: CDAX, DAX, HDAX, Prime All Share, Prime Standard Börsen: official dealing Niedersächsische Börse zu Hannover,

end of announcement euro adhoc

Berliner Wertpapierbörse, Bayerische Börse, Hamburger Wertpapierbörse, Börse Düsseldorf, Frankfurter Wertpapierbörse, SWX Swiss Exchange, New York, London Stock Exchange; regulated dealing Bremer Wertpapierbörse (BWB), Baden-Württembergische Wertpapierbörse Branche: Pharmaceuticals
Sprache: Englisch