Earnings Release • Feb 21, 2012
Earnings Release
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Adhoc service of the pressetext news agency Josefstädter Straße 44, 1080 Vienna, Austria, phone: +43 1 81140-0
publication: 21.02.2012 08:00 source: http://adhoc.pressetext.com/news/1329807600334 PDF: http://adhoc.pressetext.com/news/media/1329807600334 keywords: Wienerberger AG / Results 2011 / Highlights 2011 / Outlook 2012
Adhoc announcement according to article 48d section 1 BörseG
Wienerberger AG, the world's largest producer of bricks with leading positions in clay roof tiles in Europe, today announced results for 2011. After completing the turnaround in the second quarter of 2010, the company returned to the profit zone during the past year. Revenues rose by 16% and operating EBITDA by 23% year-on-year in a still challenging environment. Wienerberger started 2011 with strong volume growth that was supported by the mild weather. Despite slower momentum during the second six months, volumes were higher in all product groups for the full year. This reflects the focus on premium products, which allowed Wienerberger to outperform the market. At the same time, cost inflation was successfully offset by price adjustments that was also supported in part from a gradual shift in the mix to premium products. In 2011 Wienerberger recorded after-tax profit of 41 million Euro following a loss of 35 million Euro in the previous year.
Heimo Scheuch, Chief Executive Officer of Wienerberger AG, indicated his satisfaction with the year's performance: "These results confirm that we are on the right track. After the restructuring phase, we repositioned the company and shifted the focus to our premium products and system solutions for energy-efficient construction to use the strong operating base as a platform for further growth of the Group. The success of these measures was visible in 2011: We increased our market shares in many countries, even though we also raised prices to cover cost inflation. As you know, there were no real signs of recovery in many of our markets during 2011. The positive trend in new residential construction in Germany, Belgium, France and Russia was contrasted by nearly stable development on the construction markets in the Netherlands, Great Britain, Switzerland, Poland and the Czech Republic as well as declines in the USA, Hungary, Slovakia, Bulgaria, Romania and Southeast Europe. However, our outstanding achievements of our sales force and our high-quality product portfolio allowed us to gain ground, even in difficult markets, and made these strong results possible."
In detail, results for 2011 are as follows: Group revenues rose by 16% to 2,024 million Euro, while operating EBITDA increased 23% to 259 million Euro due to better capacity utilization and higher average prices. These operating results do not include nonrecurring positive earnings effects of approx. 33 million Euro from the equity swap in the roof segment. In spring 2011 Wienerberger transferred its 50% investment in the concrete tile producer Bramac to the former joint venture partner Monier in exchange for a further 25% stake in Tondach Gleinstätten plus a settlement payment. Wienerberger now holds 50% of Tondach, a clay roof tile producer with leading positions in Eastern Europe. Group EBIT increased significantly from 11 million to 79 million Euro for the reporting year. Financial results improved, above all due to higher income from Pipelife as well as lower interest expense. After the deduction of 30 million Euro in financial results and 9 million Euro for taxes, profit after tax equaled 41 million Euro compared with a loss of 35 million Euro in 2010. Earnings per share equaled 0.08 Euro after the deduction of the hybrid coupon and non-controlling interests, compared with -0.57 Euro in the previous year.
Wienerberger again demonstrated its cash flow-generating strength in 2011. Gross cash flow totaled 204 million Euro, or approx. 53 million Euro more than 2010. Cash flow from operating activities amounted to 179 million Euro. Cash flow was used to finance 159 million Euro of investments, including 103 million Euro for normal capex, which includes besides the standard maintenance capex also as well as technological improvements, and 56 million Euro for growth investments. In July 2011 Wienerberger issued a new bond with a volume of 100 million Euro to further strengthen liquidity and, with liquidity reserves of 584 million Euro and net debt of 442 million Euro (which represents gearing of only 18%), has a strong capital structure.
In January 2012 Wienerberger successfully placed a further bond. Strong demand led to the placement of the maximum 200 million Euro volume before the scheduled end of the subscription period. This bond has a term of 3.5 years and an annual coupon of 5.0%. The proceeds will be used to preserve the Group's strong capital structure.
The Managing Board will make a recommendation to the annual general meeting on May 11, calling for a 20% increase in the dividend to 12 Eurocents dividend per share. "The economic environment is still challenging, but we want our shareholders to profit from the sound development of business in 2011 and therefore increase the dividend accordingly up to 12 Eurocents," explained Heimo Scheuch on the reasons for this decision.
The development of business in the fourth quarter of 2011 was favorably influenced by the mild weather, with December particularly sound in year-on-year comparison. Higher volumes in all product groups led to a 17% increase in revenues over the comparable prior year period. Operating EBITDA fell 11% to 45 million Euro due to 7 million Euro of expenses for optimization measures in the fourth quarter of 2011, while the comparable period in 2010 included a comparable amount of non-recurring positive effects. After an adjustment for these effects, the increase in earnings would have matched the reported revenue growth. In Central-East Europe clay block sales declined slightly, but volumes were higher in all other product groups. This segment recorded a quarter-on-quarter increase of 4% in revenues to 129 million Euro and 5% in operating EBITDA to 20 million Euro, in part due to higher average prices. In Central-West Europe higher volumes and prices in all product groups supported growth of 14% in revenues to 100 million Euro and 13% in operating EBITDA to 10 million Euro. North-West Europe recorded higher volumes in all product groups, which led to an improvement of 17% in revenues to 194 million Euro. As a result of optimization costs, EBITDA growth in this segment was lower than revenues with a 6% increase to 28 million Euro. In North America, the mild winter supported an 8% increase in revenues to 34 million Euro also based on higher average prices. Operating EBITDA was lower than the comparable prior year quarter because of non-recurring income recognized in Q4 2010. In the Investments and Other segment, revenues rose substantially to 12 million Euro with the initial consolidation of Steinzeug-Keramo, while operating EBITDA declined slightly due to integration costs associated with the takeover of EuroCeramic during the summer.
Last week Wienerberger announced the acquisition of the remaining 50% stake in Pipelife, one of the leading producers of plastic pipe systems in Europe, for 162 million Euro. For Wienerberger, which will hold 100% of Pipelife after the approval of the
transaction by the antitrust authorities, the takeover opens new dimensions with respect to both size and strategic focus. Pipelife was previously included at equity, and full consolidation will increase Wienerberger Group revenues by approx. 800 million Euro or roughly one-third, and EBITDA by more than 20%, or approx. 70 million Euro, per year. The takeover of this pipe systems producer also sets a strategic milestone. Wienerberger will reduce its dependency on cyclical new residential construction from nearly 70% to 60% of revenues, as planned, and also open sustainable opportunities for growth in new areas of business and markets.
Heimo Scheuch expressed his satisfaction over this important development for the Wienerberger Group: "The full takeover of Pipelife represents a milestone in our strategy to expand the core business. With this transaction, we - together with our subsidiary Steinzeug-Keramo, which holds leading positions in ceramic pipes - will become one of the most important European players in pipe systems. For Wienerberger, this not only means lower dependency on cyclical new residential construction, but also additional and sustainable growth potential. Plastic pipes continue to gain market shares over competing metal and concrete products, and this segment is therefore growing faster than the market. The integration of Pipelife will also allow us to expand our business, especially in the areas of building and electro installations. We intend to use the combined innovative power and strong market structures of Pipelife and Wienerberger to generate growth and further strengthen our market presence. This transaction reflects our sustainable growth strategy, and also creates immediate added value for our shareholders", added Heimo Scheuch in conclusion.
Wienerberger is not in a position to provide a specific guidance for 2012 at the present time because visibility in two key regions - Eastern Europe and the USA - is still limited. In Germany, the backlog of building permits from the previous year points to a continued upturn in new residential construction, at least during the first half of 2012. In France, the company expects continued stability in new residential construction and further growth in the market share of clay blocks versus concrete as well as increased demand for roof tiles due to sound activity on the renovation market. Belgium appears to be facing a period of weakness due to a cutback in government incentives and a decline in consumer confidence. In Poland, the only country in Central-East Europe where strong domestic demand and macroeconomic stability make a forecast possible, steady demand for building materials is expected. In the other countries of this region, visibility is so low that forecasts for the development of business are impossible. But as construction activity has already fallen to such a low level in many Central and East European countries that further significant declines in new residential construction are unlikely. For the USA, the NAHB (National Association of Home Builders) is forecasting an increase of over 15% in housing starts from a low level. However, Heimo Scheuch remains reserved: "I would be happy if they were right this time, but I have my doubts due to the high unemployment and prevailing consumer uncertainty in the USA. The situation has improved to a certain extent in recent months, undoubtedly also because of the mild weather. In any case, I would be pleased to see a slight improvement in new residential construction during 2012."
Wienerberger expects a slight rise in input costs during 2012, above all for energy. Over 50% of the required volumes have already been secured through fixed price contracts, and current estimates indicate a price-related increase of approx. 15 million Euro in energy costs for the year. "I expect that we will be able to adjust our prices to cover cost inflation", added Heimo Scheuch.
Financial discipline and a healthy capital structure remain the top priority for Wienerberger, and investment plans for 2012 are therefore reserved. "We have budgeted 120 million Euro for normal capex, which includes besides the maintenance as well as technological improvements. Growth investments include of course 162 million Euro for the Pipelife acquisition. Since Pipelife has very low net debt (approx. 70 million Euro at year-end 2011), we do not expect any significant deterioration in our balance sheet or financial indicators during 2012. This transaction will not have any negative impact on our strategic flexibility or our covenants because of our solid financial base, cash reserves and low gearing. After the financing of the purchase price and the consolidation of Pipelife's net debt, we will still meet our targets at the end of 2012 with net debt / operating EBITDA clearly below 2.5. However, it should be noted that these indicators will fluctuate during the year due to the seasonality of our business."
Heimo Scheuch looks to the future with optimism: "Notwithstanding the uncertain outlook, my expectations for 2012 are positive. We intend to continue our course and use our strong operating base for further organic growth want to again outperform the market this year. This will be supported by the launch of new products and system solutions in various markets to generate growth with targeted marketing and sales initiatives."
Details on results for 2011 are provided in the attached financial information. The full annual report and the annual financial report for 2011 will be published on March 29, 2012 and also be available for review and download from the homepage.
Barbara Braunöck, Head of Investor Relations
T +43 1 601 92 - 471 | [email protected]
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| Earnings Data | 2009 | 2010 | 2011 | Chg. in % | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenues | in mill. Euro | 1,816.90 | 1,744.80 | 2,023.70 | +16 | |||||||||
| Operating EBITDA 1) |
in mill. Euro | 208.60 | 210.80 | 258.60 | +23 | |||||||||
| Restructuring in mill. Euro costs and impairment fixed to assets |
-153.70 | 0.00 | 0.00 | 0 | ||||||||||
| Impairment charges to goodwill |
in mill. Euro | -123.30 | 0.00 | -2.60 | <-100 | |||||||||
| Deconsolidation result |
in mill. Euro | 0.00 | 0.00 | 33.20 | >100 | |||||||||
| EBIT | in mill. Euro | -258.10 | 10.70 | 79.10 | >100 | |||||||||
| Profit before tax | in mill. Euro | -295.60 | -40.80 | 49.50 | >100 | |||||||||
| Profit after tax | in mill. Euro | -258.70 | -34.90 | 40.80 | >100 | |||||||||
| Free Cash flow 2) |
in mill. Euro | 250.80 | 176.80 | 141.70 | -20 | |||||||||
| Maintenance capex |
in mill. Euro | 62.70 | 61.70 | 102.50 | +66 | |||||||||
| Growth investments |
in mill. Euro | 88.10 | 56.30 | -36 | ||||||||||
| ROCE 3) | in % | 0.20 | 2.20 | - | ||||||||||
| CFROI 4) | in % | 4.30 | 5.20 | - | ||||||||||
| Ø Employees | 4.30 12,676 |
11,848 | 12,818 | +8 | ||||||||||
| +8 Balance Sheet Data |
2009 | 2010 | 2011 | Chg. in % |
||||||||||
| Equity 5) |
in mill. Euro |
2,547.0 0 |
2,525.7 0 |
2,459.9 0 |
-3 |
| Net debt in mill. Euro |
408.00 | 374.50 | 442.50 | $+18$ | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Capital $\mathsf{d}$ |
in mill. employe Euro |
2,816.8 $\overline{0}$ |
0 | 2,779.5 | 0 | 2,798.5 $+1$ |
|||||||||||
| Balance in mill. | 4,087.4 | 4,059.3 | 4,122.3 | $+2$ | |||||||||||||
| sheet | Euro | $\overline{0}$ | 0 | 0 | |||||||||||||
| total | |||||||||||||||||
| Gearing in % | 16.00 | 14.80 | 18.00 | ||||||||||||||
| Stock Exchan ge Data |
2009 | 2010 | 2011 | Chg. in $\%$ |
|||||||||||||
| Earning | in Euro | $-3.17$ | 0.08 | >100 | |||||||||||||
| s per | $-0.57$ | ||||||||||||||||
| share | |||||||||||||||||
| Dividen | in Euro 0.00 |
0.10 | 0.12 | $+20$ | |||||||||||||
| d per | |||||||||||||||||
| share | |||||||||||||||||
| in Euro Share price at |
12.78 | 14.29 | 6.97 | $-51$ | |||||||||||||
| year- | |||||||||||||||||
| end | |||||||||||||||||
| Shares outstan |
in 1,000 91,298 | 116,528 | $116,758$ 0 | ||||||||||||||
| ding | |||||||||||||||||
| (weighte | |||||||||||||||||
| d) 6) | |||||||||||||||||
| Market | in mill. | 1,502.0 | 1,679.5 | 819.00 | $-51$ | ||||||||||||
| capitaliz Euro | $\overline{0}$ | 0 | |||||||||||||||
| ation at year- |
|||||||||||||||||
| end | |||||||||||||||||
| Cen | Inv | ||||||||||||||||
| Op | tral- | Cen | Nor | Nor | est | ||||||||||||
| $erat$ Eas | tral- | th- | th | me | |||||||||||||
| ing | It. | We | We | Am | nts | ||||||||||||
| Seg | Eur | st | st | eric | and | ||||||||||||
| me nts |
ope 7) |
Eur | Eur | a | Oth er |
||||||||||||
| 201 | ope 8) |
ope 8) |
7) | ||||||||||||||
| 1 | 9) |
| in mill. Eur $\mathsf{o}\,$ and $\%$ |
|||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Rev 587 enu es |
.60 | $(+1)$ $ 1\% $ .10 |
435 | $(+1)$ $5\%$ ) .10 |
808 | $(+1)$ $2\%)$ |
135 .30 |
$\left( -\right)$ $6\%$ ) 60 |
57. | (>1) $00\,$ % |
|||||
| Op erat ing EBI TD A 1 |
$102$ (+1 .50 |
9%) 20 | 46. | $(+3)$ $1\%$ ) .20 |
136 | $(+2)$ $0\%$ ) 8.7 |
$\overline{\phantom{a}}$ 0 |
$\left($ <- $100$ 17. $%$ ) |
60 | $(+3)$ $9%$ ) |
|||||
| EBI T |
24. 80 |
$(+1)$ 9%) 50 |
16. | (>1) $00\,$ $%$ ) |
66. 80 |
$(+4)$ $9\%)$ 32. |
$\overline{\phantom{a}}$ $00\,$ |
$\left( -\right)$ 44 % |
3.0 0 |
(>1) $00\,$ % |
|||||
| CF $ROI$ 0 in $\%$ $\left( \frac{4}{2} \right)$ |
7.1 | 5.8 0 |
7.1 $\pmb{0}$ |
1.2 0 |
15. 20 |
||||||||||
| Tot al inve stm ent s |
45. 90 |
$\vert$ (- 7%) 90 |
32. | $(+6$ 53. 6%) 30 |
$(+5)$ $1\%$ ) 0 |
8.1 | $(+4)$ $%$ ) |
18. 60 |
$\left( -\right)$ 51 % |
||||||
| Cap ital em ploy ed |
$755$ (+1 .30 |
$%$ ) | 349 .20 |
$(-)$ 1%) 19. |
1,1 30 |
$(+1)$ $%$ ) |
501 .20 |
$(0\%$ 73. $\mathcal{E}$ |
50 | (0% | |||||
| Ø Em ploy ees |
4,6 24 |
$(+4)$ $%$ ) |
$ 2,0\rangle$ 67 |
$(+2)$ %) |
4,2 54 |
$(+5)$ %) |
1,1 27 |
$(+2)$ $%$ ) |
746 | (>1) $00\,$ % |
2) Cash flow from operating activities minus cash flow from investing activities plus growth investments
3) Calculation based on average capital employed
4) Calculation based on average historical capital employed
5) Equity including non-controlling interests and hybrid capital
6) Adjusted for treasury stock
7) East Europe holding companies are reported under the Investments and Other segment beginning in 2011 (previously: Central-
East Europe); comparable figures from the prior year period were adjusted accordingly
8) The cross boarder trading activities of the Netherlands and Germany are reported under North-West Europe beginnign in 2011 (previously: Central-West Europe), comparable figures from the prior year period were adjusted accordingly 9) Including Group eliminations and holding costs; offset of inter-company sales in this segment
Note: In the table of the operating segment data, change in % to the comparable prior year period are shown in brackets.
| emitter: | Wienerberger AG Wienerbergstraße 11 1100 Wien Austria |
|---|---|
| contact person: | Barbara Braunöck |
| phone: | +43 1 60192-471 |
| e-mail: | [email protected] |
| website: | www.wienerberger.com |
| ISIN(s): | AT0000831706 (share) |
| stock exchanges: | official trade in Vienna |
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