MANNESMANN SEES DIFFICULT YEAR FOR CAPITAL GOODS

  Mannesmann AG &lt;MMWG.F> expects a
  difficult year for the capital goods industry in 1987, chief
  executive Werner Dieter told a news conference.
      Dieter said West German producers would see a downturn in
  foreign business because of lower energy prices and the higher
  mark, as well as a deterioration of the economies of customer
  nations.
      Domestic business was also declining and orders for West
  German engineering goods have been falling since July 1986,
  Dieter said.
      Mannesmann's profit fell by an undisclosed amount in 1986.
      Dieter said Mannesmann's pipe activities would suffer a
  set- back, although measures to cut costs, which were started
  last year, were now having an effect.
      Dieter noted, however, that pipes and related products
  accounted for less than 30 pct of Mannesmann's turnover. The
  company saw good chances in the automation sector, which Dieter
  said had become one of Mannesmann's "strategic aims."
      He said the company's drive to combine activities in
  mechanical and electronic engineering was a particular "plus
  point" for Mannesmann.
      Mannesmann, which yesterday announced it had agreed to take
  a majority stake in the Fichtel und Sachs AG car parts group
  for an undisclosed sum, saw third party group turnover fall
  nine pct in 1986 to 16.60 billion marks. Its world group net
  profit in 1985 was 255.9 mln marks.
      It has blamed the fall in 1986 profits on the weaker dollar
  and lack of demand for steel pipe.
      Dieter said there were signs that prices for steel pipe
  were bottoming out and would slowly start to rise, but he added
  the company would continue to cut personnel in this sector this
  year.
  

