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 severe weather conditions in the first six months. The Bricks and Tiles Europe Division registered a 9% decline in revenues to € 653 mill. and a 29% drop in operating EBITDA to € 64 mill. Average prices in the Bricks and Tiles Europe Division were slightly lower than the prior year at the end of June. Wienerberger was able to offset cost inflation in Western Europe with price adjustments despite a market-related decline in volumes. In Eastern Europe, the weaker demand for building materials led to increasing pressure on prices in a number of regions.

Steinzeug-Keramo, the specialist for ceramic pipe systems, recorded a slight increase in volumes over the comparable prior year period after a weather-related difficult start at the beginning of the year and also closed the first six months in line with the forecast.

The North America Division benefited from moderate recovery in new residential construction. Revenues rose by 35% to € 109 mill. and operating EBITDA from € 1 mill. to € 4 mill., also owing to the initial consolidation of the North American pipe business.

Average prices for bricks and roofing tiles remained nearly constant at the prior year level, despite increasing price pressure in individual regions.

Outlook and strategy

Forecasts for the remainder of this year point to a continuing difficult market environment, above all for the European brick business. In a number of important markets, e.g. the Netherlands, Belgium, France and nearly all East European countries, construction is now lower than in the crisis year 2009. Despite the difficult market environment, Heimo Scheuch, CEO at Wienerberger AG, remains optimistic in his outlook for the second half-year and expects a considerably better last six months, especially for roofing tiles.

Wienerberger’s main focus is on the generation of strong cash flows, the strengthening of its market positions and the development of new products. In its continued development, Wienerberger will concentrate on value-creating growth steps in its core businesses.