SW Umwelttechnik Stoiser & Wolschner AG

Earnings Release • Nov 8, 2001

News Details

Ad-hoc | 8 November 2001 08:25

SW Umwelttechnik english

SW Umwelttechnik reports increased revenue in third quarter Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Strong performance in Hungary Sales down in Austria and Germany Revenue up by 4%, cash flow by 14% SW Umwelttechnik’s performance in the first three quarters of 2001 was marked by rapid growth in EU candidate member Hungary, and declining sales in Austria and Germany. Despite increased restructuring expenses the group posted stable earnings before interest and tax (EBIT) on a modest overall increase in revenue. SW Umwelttechnik’s revenue rose by 4% to EUR 53.0 million (m) over the first three quarters of 2001, while total output was 5% up at EUR 54.6m. The group’s strong position in Hungary led to an increase in the share of revenue accounted for by this market from 54% in 2000 to 59% so far this year. The proportion of revenue generated by Austrian sales fell from 43% to 32%, while Germany and other EU member states contributed the remaining 9%. The revenue breakdown by business sectors was virtually unchanged, with Environmental Products accounting for 41%, Environmental Engineering for 31% and Infrastructure Products for 28% of the total. SW Umwelttechnik continued to build up its strong market position in Hungary where the lively demand for environmental equipment, and the good opportunities for obtaining domestic and international finance have created an excellent trading environment for the group.In Austria and Germany, the economic downturn, public expenditure cuts and reduced spending by corporate and private customers resulted in falling sales by all business sectors. SW Umwelttechnik has responded by launching a cost reduction programme which – as reported – includes the closure of a natural building material factory. The improved cost base in comparison to the competition was reflected in an increase in earnings before interest, tax, depreciation and amortisation (EBITDA), which registered a 14% year-on-year increase to EUR 5.6m. EBIT held steady at the previous year’s level of EUR 2.7m. Due to the planned increase in finance cost to EUR 0.9m, profit on ordinary activities (POA) dropped by 25%, from EUR 2.4m to EUR 1.8m. EUR m Q1-Q3 2000 Q1-Q3 2001 Change Revenue 50.9 53.0 4% Total output 51.8 54.6 5% EBITDA 4.9 5.6 14% EBIT 2.8 2.7 -1% POA 2.4 1.8 -25% Payroll 838 825 -2% end of ad-hoc-announcement (c)DGAP 08.11.2001 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Investment Some 85% of the EUR 7m investment programme for 2001 has already been implemented. The resultant improvement in productivity led to an increase of 6% in revenue per employee. The first stage of the project for a new factory in south Budapest was commissioned on schedule. About 75% of total capital expenditure is being focused on the Hungarian growth market. In Romania, plans call for production start-up and execution of the first projects in 2002. Companies in the group’s Environmental Products and Environmental Engineering businesses have been founded there. Strategy and outlook – With EU accession candidates obliged to finance environmental investments, demand in these markets is strong. Hungary will therefore continue to be the main focus of SW Umwelttechnik’s business and investment activities in the first expansion phase. Thereafter, the group will progressively enter the markets of other future EU members. – The sharp contraction in Austrian and German demand is leading to a shake-out in the industry. SW Umwelttechnik will rigorously pursue its cost reduction programme, and replace low-margin, commoditised products with innovative, high- growth ones such as mini wastewater treatment plants, biogas plants and sludge treatment equipment. – The favourable legal framework for renewable energy forms will generate strong demand for biogas plants. SW Umwelttechnik will apply technology developed for wastewater treatment in this area of business. – From 2005 onwards Austrian waste disposal regulations will effectively prohibit dumping of sewage sludge at landfills. SW Umwelttechnik plans to extend its product range to exploit the existing market access provided by its wastewater treatment plants. In the light of current order books of EUR 21.6m management anticipates a further decline in Austrian and German business for 2001 as a whole; however this may be fully compensated by the group’s excellent performance in Hungary. This year’s profits will be below the record results of 2000 owing to restructuring expenses in Austria and Germany. Management expects 2002 to see a repeat of the results for 2000. Sustained expansion due to the growth potential of Central and East European markets and the group’s attractive environmental product range (water and sludge treatment, and renewable energy equipment) will put SW Umwelttechnik on the path to another outstanding performance. Contacts Heinz Wolschner, member of the Management Board of SW Umwelttechnik Tel. +43 (0)463 321090; fax +43 (0)463 37667 Christian Riel, Finance & Investor Relations Tel. +43 (0)664 4337105; fax +43 (0)1 3688686; E-mail: christian.riel@sw-umwelttechnik.at Website: www.sw-umwelttechnik.at ——————————————————————————– WKN: 080820; Index: Listed: Amtlicher Handel in Wien; Freiverkehr in Berlin, Düsseldorf und Stuttgart 080825 Nov 01