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[Nov 2005]
Wienerberger Remains on Growth Track
Wienerberger AG (Vienna, Austria) has announced a further increase in earnings. Group revenues for the first nine months of 2005 rose by 11% to 1.4686 billion euro while operating EBITDA increased by over 5% to 332.4 million euro.
"Two factors are slowing our earnings growth this year," said CEO Wolfgang Reithofer, "lower demand on our key markets Germany, Poland and Hungary and related pressure on prices plus higher energy costs." On a positive note, he emphasised that the 30 million euro EBITDA decline in these markets and the 19 million euro increase in energy costs were more than offset by favourable developments in Belgium, Holland, France, Italy, the Czech Republic, Austria and the USA.
"Thanks to our geographic portfolio, Wienerberger is on the way to again increase results in 2005. We have adjusted out strategy to reflect the new situation and strengthened our efforts to optimize both costs and capacity," indicated Mr Reithofer.
One reaction to the changes in the market environment is the announcement that Wienerberger will close 17 older and smaller plants and shift production to newer and more efficient facilities. "I expect non-recurring expenses of approximately 11 million euro in 2005 - 5 million euro cash out and 6 million euro in write-offs - and we have recognized 5 million euro of this total by September 30," explained Mr Reithofer.
In spite of a temporary weakness in a number of markets, Wienerberger nevertheless remains committed to its profitable growth strategy and will invest approximately 250 million euro in growth in 2005: 70% of this is targetted for investments in new plants or the expansion of capacity and 30% for acquisitions. A total of 187.3 million euro was invested during the first nine months of 2005, financed primarily from the group's high steady cash flow.
ENDS