Investors sell telecom stocks, fearing price war

Article Abstract:

Deutsche Telekom AG plans to make intensive reductions in prices so it could protect its market share after the telecom market was deregulated in 1998. Meanwhile, sector competitor MobilCom AG reported that group sales nearly quadrupled to 904.3 million marks ($539.1 million) during the first nine months of 1998 while pretax profit nearly quintupled to 111.9 million marks. Investors wary of a price battle due to heightened competition in the market responded by selling their shares in both firms. Ron Sommer, Deutsche Telekom chairman, said group sales would be slashed by billions of marks because of the price cuts. He said, however, that this would be made up through a growth in client base.

Comment:

Plans to make intensive reductions in prices to protect its market share after the telecom market was deregulated in '98

Marketing procedures, Communications, Broadcasting and Telecommunications, Telecommunications industry, Deutsche Telekom AG

Analysts stand pat until reports from German chemicals firms

Article Abstract:

German chemical industry observers has expressed plans to maintain their 1998 forecast for the industry despite the reformation of the production forecasts by the VCI Chemical Industry Association of Germany. Analysts point out that the new set of production forecasts, which expects a mere 0.5% growth in production, is in no way reflective of the projected performance of entire chemical industry. The industry analysts likewise point out that individual company ratings may only be revised after the publication of each's financial data for the first three quarters of 1998.

Comment:

Germany: Chemical industry observers express plans to maintain 1998 forecast for industry despite new forecasts

Financial analysis

Degussa-Huels shows charge, shares decline

Article Abstract:

Degussa-Huels AG saw its share value decline following its reporting of a slowdown in its financial performance. The company reported a 69 million euros charge. Degussa's individual operations also performed poorly. As a result, the company's share valued dropped 1% to 37.50 euros per share. This represented a fall of 35 European cents.

Securities prices, Abstract, Securities, Chemical industry, Degussa-Huels AG