Wienerberger AG

Earnings Release • Oct 12, 2001

News Details

Ad-hoc | 12 October 2001 08:00

Wienerberger AG english

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– In order to actively counteract, both the weaker global economic environment and the situation in the construction industry, Wienerberger introduced optimization programs in a number of countries during the course of this year. The goal of these programs is to adjust production capacity and fixed costs to meet lower demand. In addition, valuation adjustments were announced to reflect changing market conditions. In Germany Wienerberger will close five brick plants to help reduce massive excess capacity. Three plants will be closed in the USA. Production will also cease at one plant each in Austria, Switzerland, the Czech Republic, Poland, and the Netherlands. The majority of these closings involve small and older production facilities. A total of 593 employees, or 5% of our workforce, will be affected by these measures. After conclusion of this reorganization, the Wienerberger Group will have roughly 11,000 employees in over 200 plants in 28 countries. These restructuring measures will generate one-time costs of roughly EUR 90 million, which will be recorded during the fourth quarter of 2001. Of this total, approximately EUR 10 million will trigger cash outflows and EUR 80 million represent extraordinary write-downs. The main part, or EUR 45 million, will be made in Germany. Larger valuation adjustments will also involve Switzerland and the pipe joint ventures. These reorganization costs will place a significant burden on 2001 earnings. They are, however, non-recurring and not related to operations. The inherent value of the Company will remain untouched by these write-downs. Furthermore, Wienerberger will do everything in its power to partially offset these expenses through the sale of non-operating real estate, in keeping with Group strategy. After the transition year 2001, our goal is to reestablish the past upward earnings trend beginning in 2002. Wienerberger AG The Managing Board Vienna, October 12, 2001 For additional information contact Thomas Melzer, Corporate Communications / Investor Relations T +43(1)60192-471 (463)