SW Umwelttechnik Stoiser & Wolschner AG

Earnings Release • Feb 20, 2002

News Details

Ad-hoc | 20 February 2002 07:44

SW Umwelttechnik english

SW Umwelttechnik announces preliminary results for 2001 Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– SW Umwelttechnik announces preliminary results for 2001 * Slight increase in revenue thanks to strong performance in Hungary * Unexpectedly sharp fall in EBIT due to tighter margins and Austrian works closure * Dividend halved to EUR 0.375 SW Umwelttechnik put in an excellent performance in Hungary in 2001, but the year was also marked by a dramatic decline in demand in Austria and Germany. The contraction of these markets necessitated rationalisation of the product range and rapid implementation of cost reduction programmes including a works closure, leading in turn to an unexpectedly sharp decline in earnings. According to the preliminary IAS results, in financial 2001 SW Umwelttechnik recorded an increase of 2.8% in revenue to EUR 70.9 million (m). The share of total turnover accounted for by the Hungarian growth market rose from 54% to 58%, while that of Austria fell from 43% to 37%, and Germany and other neighbouring countries contributed the remaining 5%. The contributions to revenue of the group’s three business sectors was virtually unchanged from the previous year, Environmental Products accounting for 42% of the total, Environmental Engineering for 30% and Infrastructure Products for 28%. Earnings before interest and tax (EBIT) lost more ground than anticipated, dropping from EUR 5.0m to EUR 2.9m. The causes lay in the weakness of the Austrian and German markets due to cuts in public funding, and to one-time charges totalling some EUR 1m for the closure of a natural building materials factory and the dropping of certain product lines. These negative trends were cushioned but not entirely compensated for by the strong showing in Hungary. EUR m 1999 2000 2001v Change, 2000-2001 Revenue 44.2 69.0 70.9 2.8% Total output 45.9 69.6 72.0 3.4% EBITDA 3.7 7.8 6.6 -15.4% EBIT 1.7 5.0 2.9 -42.0% POA 1.3 4.0 2.2 -45.0% Payroll 703 818 807 -1.3% end of ad-hoc-announcement (c)DGAP 20.02.2002 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: In line with the significant deterioration in earnings, despite record revenue, and the resultant fall in net profit for the year, a halving of the dividend for 2001 is planned. Capital expenditure Some 75% of last year’s large-scale investment programme, totalling EUR 6.5m, was focused on the Hungarian operations. A new factory in south Budapest entered production on schedule; this will be expanded in subsequent project stages. Capital expenditure of EUR 1.5m in Austria and Germany solely concerned rationalisation measures under the cost reduction programmes. Outlook Management anticipates a continuation of current market trends. The strong demand in Hungary and other EU membership candidates due to the need to meet EU environmental standards should result in rapid growth for all SW Umwelttechnik’s business sectors. The contraction in demand, and concentration in the industry will persist in Austria and Germany. Thanks to the rapid implementation of its cost reduction programme and the termination of low-margin product lines, as well as its innovative products, SW Umwelttechnik is well placed to master these challenges. New products such as groundwater purification systems and biogas plants are especially promising. Given that these premises are borne out by events, and in the light of the current order backlog of EUR 26m, management is looking for a repetition of the record results posted in 2000, following last year’s dip. The definitive results for 2001 will be announced at a press conference on 24 April 2002. Contact Dr. Bernd Wolschner, member of the Management Board Tel: +43 (0)7259 31350; fax: +43 (0)7259 31356 Christian Riel, Finance & Investor Relations Tel.: 0664/433 71 05, Fax: 01/368 86 86; e-mail: christian.riel@sw- umwelttechnik.at Website: http://www.sw-umwelttechnik.at ——————————————————————————– WKN: 080820; ISIN: AT0000808209; Index: Listed: Amtlicher Handel in Wien; Freiverkehr in Berlin, Düsseldorf und Stuttgart 200744 Feb 02