Business performance in the first six months of 2011

Wienerberger grows and returns to profit

In the second quarter of 2011 too, Wienerberger AG was able to increase its revenues by 8% and operating EBITDA by 11%. Wienerberger recorded an increase of 19% in revenues to € 986 mill. and 58% in the operating EBITDA to € 123 mill. for the first six months of 2011. These results returned the brick producer to the profit zone. The sound earnings growth was driven by volume increases and an improvement in capacity utilization as well as cost reduction measures and successfully implemented price increases. The clay brick and tile company recorded a net profit of € 38 mill., compared with a loss of € 39 mill. for the first half of 2010. The improvement in earnings led to a significant € 44 mill. year-on-year rise in the gross cash flow to € 108 mill. for the reporting period.

Market development

Wienerberger recorded a sound performance in Central-East Europe. The positive trend continued in Poland, the Czech Republic, Russia, Finland and the Baltic States, but construction activity in the other East European countries remained weak. Housing starts declined further in Hungary, Bulgaria, Romania and the smaller Southeast European markets. Central-East Europe recorded a year-on-year increase of 17% in revenues to € 273 mill. and 45% in operating EBITDA to € 44 mill.

Germany and Switzerland were the growth drivers for Central West Europe. Revenues in this segment rose by 19% to € 207 mill. and operating EBITDA increased by an impressive 80% to € 18 mill.

The positive development of new residential construction in North-West Europe, above all in France and Belgium, as well as strong momentum in the renovation sector across the entire region led to sound volume growth in roof tiles and clay blocks. Revenues in this segment rose by 15% to € 416 mill. The operating EBITDA could be improved by 42% from € 50 mill. to € 71 mill.

In North America, which generates 6% of Group revenues, new residential construction failed to meet expectations during the second quarter after a severe winter. Revenues totalled € 62 mill., or 14% below the prior year level of € 72 mill., while the operating EBITDA fell to € - 5 mill. in the first six months of 2011 based on stable average prices but against the backdrop of dec­lining capacity utilization.

Outlook

The positive trend is expected to continue on most of the West European markets as well as Poland, the Czech Republic and Russia during the second half-year. In contrast, the market environment in Hungary, Romania, Bulgaria and the smaller countries of Southeast Europe will most likely remain difficult. There are also no signs of recovery in North America at the present time.

Heimo Scheuch, CEO at Wienerberger AG, sees future growth opportunities for the Group, above all, in products and systems for energy-efficient and sustainable construction. Wienerberger has focused on this subject for many years and, together with building technology specialists, developed the e4Brickhouse 2020 – a future-oriented model house for sustainable construction.

x

Related articles:

Issue 10/2012

Wienerberger with lower profit in first six months of 2012

In the first half year of 2012, the revenue of the Wienerberger Group was 5% above the prior-year value. Revenue development was also supported by a 4-% increase in average prices. Volume declines of...

more

Wienerberger reports record revenues and substantial profit growth

Wienerberger AG today published its results for 2015, a year of strong growth for the company. In a challenging environment, the Wienerberger Group was able to increase its revenues by 5% to € 3...

more
Issue 2/2017

Wienerberger doubled net profit in 2016

Wienerberger AG revenues remained almost stable at € 2 973.8 mill. in 2016. Over the same period, EBITDA increased by 9?% to € 404.3 mill. The company more than doubled its net profit to € 82.0...

more
Issue 10/2013 Wienerberger AG

Decline in revenues and EBITDA for Bricks and Tiles Europe Division at mid-year

Wienerberger AG was able to increase revenues to € 1?260 mill. and its operating EBITDA by 5% to € 106 mill. over the comparable prior-year period. All the divisions suffered as a result of the...

more

13.05.2011 News: Wienerberger records strong growth in first quarter of 2011

Wienerberger AG (www.wienerberger.com) presented sound results for the first quarter of 2011. Favorable weather across Europe at the beginning of the year and a robust new residential construction...

more