SW Umwelttechnik Stoiser & Wolschner AG

Earnings Release • Aug 18, 1998

News Details

Ad-hoc | 18 August 1998 08:07

Ad hoc-Service: SW Umwelttechnik half-yearlyreport

—————————————————————— Ad hoc-Service: SW Umwelttechnik half-yearlyreport Ad hoc-Mitteilung übermittelt durch die DGAP. Für den Inhalt der Mitteilung ist allein der Emittent verantwortlich. —————————————————————————— SW Umwelttechnik – half-yearly report Sales boosted by 26 % and results of general business activity more than doubled 18 August 1998 SW Umwelttechnik, Austria’s market leader in the field of decentralized sewage disposal, is expanding steadily. In comparison with the first six months of 1997, sales in the first half of 1998 were boosted by 26 % and the results of general business activity more than doubled. Sales and results in the first six months of 1998 SW Umwelttechnik group’s sales in the first half of 1998 amounted to ATS 134 million, an increase of 26 % in comparison with the same period last year, above all thanks to acquisitions made in 1997 and 1998. Divided up country by country, 70 % of sales was in Austria, 25 % in Hungary and 5 % in EU countries. Representing 60 % of sales, the core activity of environmental technology continues to be the most important product group while natural building materials fell to 15 % of sales due to the general decline of the market throughout Austria. Operating results were lower than last year’s, caused by the expected decline in natural building materials and the economic situation in Hungary. It was possible to more than double the results of general business activity to ATS 17.4 million (first six months of 1997: ATS 7.7 million). Amongst others, this can be put down to a clear increase in the financial results of SW Umwelttechnik AG and the sale of part of the company not concerned with its core activity (within UAB-Holding, a 50 % share of A-Beton Terkö Rt, manufacturer of paving stones, was sold to Danubius Beton Rt). SW Umwelttechnik Group first half year,1997 first half year,1998 Sales revenue ATS 101.9 million ATS 133.6 million Operating results (EBIT) ATS 6.7 million ATS 0.9 million Results of general business activity ATS 7.7 million ATS 17.4 million Investments and acquisitions By the end of 1998, approximately ATS 55 million will have been invested in tangible assets in the SW Umwelttechnik group. In all 65 % of these funds will be deployed in Hungary in order to modernize the companies which have been taken over and to install new technology. The general priority for investments is the core activity of environmental technology. The strategic business objective of SW Umwelttechnik is increased growth by means of acquisitions. The takeover on 1.4.1998 of Biogest Abwassertechnik GmbH, market leader for medium-sized decentralized sewage treatment plants, is one acquisition successfully completed so far this year. Further negotiations are still underway at present. Preview for 1998 In Austria, it has been possible to consolidate our market share in the field of environmental technology still further and to continue introducing new products successfully on the market, such as the purification plant for rain water from the eaves. In conjunction with the newly acquired Biogest Abwassertechnik GmbH, the product field of decentralized cooperative sewage treatment plants is being targeted intensively. At present the acquired companies Mibet and Nageler are still being switched over to environmental technology products (core activity) but this will not have an effect on sales and earnings figures for another one to two years. The housing glut on the Austrian market led to the expected drop in the sales of natural building materials and this can only be partly compensated for by intensifying exports. The situation in Hungary in the first six months was marked by the parliamentary elections held in May 1998 and the ensuing economic stagnation. It is assumed that dynamic developments in Hungary will resume in the second half of 1998, otherwise in 1999 at the latest. It is expected that group sales can be increased significantly in comparison with 1997, with 65 % accounted for by the product group environmental technology. The results of general business activity for 1998 are expected to show a clear increase in comparison with 1997. For questions refer to: Dipl.Ing. Heinz Wolschner, Member of the Board of Management of SW Umwelttechnik Tel. + 43/463/321 09-0, Fax +43/463/376 67 Ende der Mitteilung