 |
 |
||||||
[Nov 2006]
Wienerberger Reports Significant Earnings Growth in Third Quarter
During the third quarter of 2006 Wienerberger AG (Vienna, Austria) successfully implemented its programmes to improve earnings. Both revenues and EBITDA rose by 18% from July to September, increasing Group revenues for the first nine months by 13% to €1.655.9 billion and EBITDA by 6% to €351.6 million. The sizeable growth in revenues was supported by an increase of 8% in sales volumes and average price increases of 5%.
"The development of business during the third quarter confirms our estimates at mid-year, when we indicated that the improvement in earnings would follow the strong growth in revenues with a delay," commented Wolfgang Reithofer, CEO of Wienerberger AG, on the announcement of results. "In a simplified manner, I would characterize our markets during the third quarter as
follows: new residential construction was strong in Europe, but declined noticeably in the USA."During the third quarter the development of earnings rebounded from the declines recorded during the early months of 2006. Operating EBITDA rose by 6% to €351.6 million for the first three quarters, even though higher energy prices during the course of the year increased costs by €46 million. The improvement in earnings was supported by strong demand on nearly all European markets and also reflected the positive effects of price increases made at the start of the year and a further adjustment in September.
"Wienerberger will record another improvement in earnings for the full 2006 Business Year,2 indicated Mr Reithofer optimistically. "Our goal to increase EBITDA by 10% is unchanged, but depends on continued favorable operating conditions in Europe and only a limited downturn in the USA. Our employees and management remain focused on this target."
All segments reported an improvement in revenues, with the largest increase registered in Central-East Europe at +19%. In this region Wienerberger recorded double-digit growth in sales volumes as a result of strong demand in Poland, Hungary, Romania, Croatia and Slovakia, and further expanded its market positions in these countries. In Central-West Europe the primary driver for top-line growth of +17% was the recovery of residential construction in Germany, which led to a significant increase in sale volumes across all product groups. In North-West Europe revenue growth of 10% was supported by higher sales volumes and price adjustments in nearly all countries. Significantly more hollow bricks were sold in Belgium and France. However, the situation in the USA was different: the initial consolidation of Robinson Brick led to revenue growth of 8% in this segment, but sales volumes fell by 4% because the weakness that began to affect new residential construction in April intensified during the third quarter.
www.wienerberger.com
ENDS