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[April 2002]
Wienerberger Confirms 2001 Results
Wienerberger Group said that 2001 was a transition year characterised by a difficult business environment and a series of changes and optimisation measures. Following the sale of Treibacher Industrie AG, group sales declined 8% to 1.5449 billion euro. After adjustment for the disposal of businesses, group sales rose by 2%. Brick activities in Northern Europe were consolidated for the first time in 2001 and contributed 57.4 million euro to group sales.Organic growth in brick activities in Eastern Europe and Italy was offset by volume and price declines in Germany, Austria, Switzerland and Benelux. In the USA, lower volume sales were equalised by higher prices and a stronger dollar. The growth regions of Eastern Europe and the USA generated 40% of group sales.
The Pipe and Roofing Investments Segment recorded a 3% decrease in sales to 435.4 million euro. Higher sales of Bramac roofing activities in Eastern Europe were partly able to offset a decline in volume sales of Pipelife plastic pipes.
Adjusted operating EBITDA fell by 24% to 221.2 million euro and EBIT by 55% to 66.2 million euro. Weaker results were recorded primarily in Central Europe, Poland and the USA. Lower demand and price declines in Central Europe led to negative operating EBIT of 43 million euro on brick activities in this region. Poland was able to record a modest profit in spite of the economic slump. Results in the USA were depressed by lower volume sales following advance purchases in 2000, cost of idle capacity and higher energy prices. Earnings therefore fell below the record prior year level. As expected, brick activities in Eastern Europe and Italy showed positive development. Operating earnings from the acquisition in Northern Europe totalled 4.8 million euro.
Wienerberger said that developments are expected to vary by region in 2002. In Central Europe, housing starts are predicted to remain under pressure. For Western Europe, Euroconstruct forecasts a relatively stable trend. Long-term growth is forecast in Eastern Europe, where only Poland is experiencing a temporary downturn. The Polish economy is not expected to recover before 2003. The residential construction market in the USA is still healthy. In spite of this positive trend, Wienerberger has adjusted production capacity and cost structures as a precautionary measure to meet a possible decline in housing starts while maintaining the flexibility to avoid shortages if volume sales should increase.
The group is focused on the turnaround of activities in Central Europe, safeguarding earnings in the USA, profitable growth in Eastern Europe and the integration of Hanson Bricks Europe in Continental Europe. The group added that it wanted to use this as the basis to generate operating EBIT of over 100 million euro in 2002 and to exceed the 2000 operating results of 147 million euro in the following year.
ENDS