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[May 2005]
First Quarter Results Confirm Wienerberger Strategy
Wienerberger AG (Vienna, Austria) recorded satisfactory growth in earnings for the first quarter of 2005 in spite of a particularly severe winter and weaker economic environment. Group revenues rose by 7% to 333.8 million and EBITDA increased by 5% to 54.3 million. The first three months were a challenge, commented CEO Wolfgang Reithofer as he presented the results.
"The winter brought construction activity in large parts of Europe to a virtual standstill," he continued, "well into March, and the early Easter holidays further reduced the number of available working days. Furthermore, the global economy has slowed somewhat. This environment has confirmed our strategy and the effectiveness of our geographical portfolio."
Local declines in sales volumes in markets in Central-East and Central-West Europe were largely offset by positive development in North-West Europe and the USA which, said the company, demonstrated that the frequently cited risk diversification really works. The first quarter held little predictive value for the entire year in the building materials industry for seasonal reasons because results are highly dependent on weather conditions in the individual markets and Wolfgang Reithofer therefore added with optimism: "In spite of weakness on individual markets, we will continue to grow our earnings. Our sustainable goal - to increase earnings by at least 10% each year - remains valid and unchanged also for 2005".
In addition to the healthy market environment in North-West Europe, the first full consolidation of Koramic Roofing and thebrickbusiness had a positive impact on Group revenues. Sales volume declines in Hungary, Poland and Germany were largely offset by price and sales volume increases in Belgium, Holland and France.
Following a high level of investment in the previous year and a resulting increase in depreciation, Group EBIT fell 25% to 16.1 million for Q1 2005. Profit before tax also showed a drop of 25% to 10.3 million. Profit after tax reached 9.3 million for Q1 2005 whereby a reduction in the tax rate from the prior year level limited the decline in profit after tax to 15%. Earnings per share totalled 0.13 versus 0.17 for Q1 2004, which is also a result of a higher number of shares outstanding to 73.5 million after the capital increase (2004: 64.6 million shares).
ENDS