 |
 |
||||||
[May 2002]
Improvements Feature in Wienerberger's Start to Year
Wienerberger AG - the leading producer of bricks in the world - recorded a significant improvement in both sales and earnings for the first quarter of 2002. Group sales rose by 3% to 315.3 million euro, supported primarily by an increase of 9% in the Brick segment to 232.2 million euro. Organic growth was recorded in Eastern Europe, but there were lower volume sales in Austria, Holland, Poland and Northern Europe.In Poland, the expected decline in sales was the result of a difficult business environment. Advance purchases following the announcement of necessary price increases in Germany led to an upsurge in volume sales. Higher sales recorded by the Bricks USA segment are chiefly a function of the stronger US$. The Pipe and Roofing Investments segment registered a 9% decrease in sales to 81.7 million euro, which was the result of lower volume sales of pipes by Pipelife and Steinzeug. Bramac, in contrast, recorded further sales growth.
Optimisation measures led to Group EBITDA of 41.9 million euro, which represented an increase of 59%. This growth was due primarily to improvements in the turnaround markets of Germany, Austria and Switzerland and in Wienerberger's growth markets of Eastern Europe and the USA.
The Brick segment generated EBITDA of 36.6 million euro, an increase of 56%. The Pipe and Roofing Investments business unit also profitted from optimisation measures taken in 2001 and increased its EBITDA by 46% to 7 million euro. Group EBIT for Q1 2002 reached a normal level of 4.5 million euro as against an unusually weak minus 11.3 million euro for Q1 2001.
The directors said: "These good first quarter results have confirmed our goal to increase EBIT to over 100 million euro in 2002. Our evaluation of further economic developments also remains unchanged. For the 2002 Business Year we do not expect the economies in Central Europe and the Benelux countries to recover. Especially in Germany, new housing starts are predicted to decline by more than 10%. In spite of this forecast, our goal for 2002 is to record positive operating results in Germany.
"In the USA the signs of economic recovery are growing stronger, and new housing starts remain at a high level. The growing population, historically low mortgage rates, and rising consumer confidence provide sufficient support for a solid number of housing starts. We expect long-term growth in Eastern Europe, where the Polish construction industry is unlikely to recover before 2003."
The integration of the recently acquired Hanson brick activities in Continental Europe should be completed by the end of 2002 and Wienerberger feels will then decisively strengthen its market position and earning power in Northern Europe.
ENDS