Wienerberger AG

Earnings Release • Oct 23, 1998

News Details

Ad-hoc | 23 October 1998 07:32

Ad hoc-Service: Wienerberger Baustoffind. PR-INFO

—————————————————————— Ad hoc-Service: Wienerberger Baustoffind. PR-INFO Ad hoc-announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. —————————————————————————— Press Release Results 3rd Quarter 1998 Wienerberger registers overall good results – more difficult market situation favours further expansion EBIT 1-9 / 1998 (IAS): 1.9 billion ATS Upward trend slowed down in 3rd quarter Tougher price situation in Germany and Austria Continuing positive development in reform states Consistent market development in Poland and Croatia Important anticyclical expansion: BTS-Group in Germany, heavy clay activities of Keramic Laufen in France and Switzerland, 29.8 %-investment in Ibstock plc in Great Britain and USA Wienerberger recorded overall good results during the first nine months. Sales amounted to ATS 12.1 billion. Already more than 75% originate from the core businesses bricks and pipes. EBIT for the first time according to International Accounting Standards increased by 26% to ATS 1,907 million. This increase, however, is due to the different accounting of extraordinary results. EBIT adjusted for extraordinary results of industrial activities increased by 8% to ATS 1.5 billion compared to the prior year. These 3rd quarter results, however, did not meet our even higher expectations as overall economic conditions deteriorated. In the core business Wall, Ceiling and Roofing Systems in Germany the expected price stabilisation has not yet been achieved due to continuing overcapacities. Also prices in the neighbouring markets of Austria and the Netherlands are coming more and more under pressure. We see these problems as a chance for further affirmation and development of our market position. Our anticyclical expansion strategy in this region leads to temporary decreases in results, however, it will be a good investment for the future. Positive development in Eastern Europe continued also in the 3rd quarter. The crisis in Russia had no impact on the brick business in the reform states. In this region, results increased further by more than 50%. Therefore, our development in Poland and Croatia will be enforced: until the end of 1999 market shares of 30% will be achieved. In the core business Pipe Systems and Sewage Technology EBIT increased from ATS 99 to 169 million. All segments Pipelife, Semmelrock and Far East contributed to this improvement. Also the joint venture Steinzeug GmbH (24.9%) realized a positive financial result. However, also the overall performance of the Pipe-segment weakened due to the general difficult economic situation in Western Europe. Treibacher Industries recorded the highest results in their 100 years history amounting to ATS 387 million which correspond to an increase of 65%. In the Real Estate segment ATS 182 million were contributed to operating profits from the project Wienerberg City. The 50/50 Jointventure between Wienerberger and Immofinanz Immobilien Anlagen AG started the mega-project Vienna Twin-Tower as targeted. Increases in EBIT for the whole year is in any case expected in industrial activities. However, the very high expectations from the beginning will probably not be achieved due to increasingly difficult conditions. Our industrial development in Eastern Europe, our anticyclical expansion in Western Europe and our strategic acquisitons are important investments for the future by which we are approaching our Vision continuously: Wienerberger, a leading international building materials group ranking Nr. 1 in our markets. Wienerberger Baustoffindustrie AG The Managing Board Vienna, October 23rd, 1998 Attachment: Key figures 1-9/1998 by business segments End of Message