DEC’s Munich-based subsidiary, DEC GmbH, interrupted local 25th birthday celebrations to report profits for the year to June 30 down 56% to the equivalent of $37.0m. Turnover for the subsidiary, which now brings in around 6% of DEC’s consolidated sales, did however rise 7.7% over the same period, to reach the equivalent of $718.2m. Commenting […]
DEC’s Munich-based subsidiary, DEC GmbH, interrupted local 25th birthday celebrations to report profits for the year to June 30 down 56% to the equivalent of $37.0m. Turnover for the subsidiary, which now brings in around 6% of DEC’s consolidated sales, did however rise 7.7% over the same period, to reach the equivalent of $718.2m. Commenting on the figures, president Willi Kister blamed the drop on personnel costs – specifically the funding of a 15% staff increase, bringing the company’s total number of employees to 3,630. He also claimed that capital investment had doubled to around $94.0m over the course of the year. Other grievances included a squeezing of profit margins by fierce competition, and the need to drop and harmonise prices with other European-based DEC subsidiaries, in preparation for the planned 1992 Single Market. The future, however, looks marginally brighter, with Kister reporting double digit growth for the first quarter of the the current year, and confidently forecasting significant improvements by the end of the next financial year in June, 1989.
