GERMANY: Kamps promises to deliver cost savings in bid to boost share price
The family-controlled baking group Kamps has responded to a sharp 45% drop in share-value last month by promising shareholders that recent acquisitions will be integrated efficiently and smoothly.
The group, whose focus has remained on acquisitive growth with the recent buy-up of French baker Harry's and industrial player Wendeln, witnessed the share price plummet after warning that its financial target would be missed by €40m (US$36.5m).
CEO Heiner Kamps has promised that a new strategy aimed at centralising the operations of recent acquisitions will deliver annual added revenue and cost savings of €65m by 2002. He also stressed that profits before interest and tax for this year are expected to rise 7% to €100m.
Kamps, which is listed on the Frankfurt Stock Market's MDAX Index for mid-capitalization stocks, also revealed that its €1.75bn sales target for 2001 remained achievable.
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