Deutsche Babcock AG&lt;DBCG.F> expects profits to rise in the current financial year
ending September 9 although the earnings level is still
unsatisfactory, managing board chairman Helmut Wiehn said.
    He told a news conference that business during the year had
weakened somewhat but was still generally positive.
    Sales during the first five months to February was 1.26
billion marks, 46.7 pct down from the same 1985/86 period.
However, he expected turnover for the year to be approximately
unchanged from the previous year's 5.14 billion marks when
current orders from major projects are booked.
    Wiehn said incoming orders in the first five months to end-
February totalled 2.50 billion marks compared with 2.04 billion
for the same period in 1985/86. They included a 45.8 pct
increase in domestic orders to 1.57 billion marks.
    Orders in hand for the five months were 16.7 pct higher at
8.64 billion marks.
    Wiehn added that Babcock was still aiming for a three pct
yield on turnover. In the year to September 1986 group profits
totalled 39 mln marks on sales of 5.14 billion against the
previous year's 32 mln on 5.11 billion marks.
    Parent company turnover was unchanged at 25.6 mln marks.
    Wiehn said Babcock's liquidity had clearly improved in the
current business year, with financial reserves in the first
five months rising by 237 mln marks to 831 mln after increasing
by 408 mln marks to 594 mln in 1985/86.
    He said pre-tax earnings per share for 1985/86, according
to the DVFA method, were 26.95 marks from 21.40 marks and
earnings after tax rose to 10 marks from 8.10.
    The company earlier said dividend will be unchanged at
three marks for ordinary shares and 3.50 marks for preference
shares.
 REUTER
