Bloomberg News

Wienerberger Third-Quarter Net Rises 12% to 19.1 Million Euros

November 09, 2011

Nov. 9 (Bloomberg) -- Wienerberger AG, the world’s largest brick maker, said third-quarter profit rose 12 percent supported by higher volumes, better capacity utilization and cost savings.

Net income in the three months ended Sept. 30 increased to 19.1 million euros ($26.3 million euros) from 17.1 million euros a year earlier, the Vienna-based company said in a statement today. Sales and operating profit before interest, taxes, depreciation and amortization each increased 10 percent to 569.5 million euros and 90.3 million euros, respectively.

“Depending on the weather during the last two months, I expect operating Ebitda of 250 million euros to 260 million euros for the full year compared to 210 million euros last year,” Chief Executive Officer Heimo Scheuch said. Including non-recurring effects such as the transfer of its concrete roof tile activities to Monier Group in February, Wienerberger expects Ebitda to rise to 280 million euros to 290 million euros from 217 million euros in 2010, he said.

Scheuch also reiterated that he sees positive net income for the full year, after two years of losses. He declined to comment on the size of the profit or potential dividend payments.

While due to “limited operational visibility and prevailing macro-economic uncertainty” Scheuch expects the buildings materials sector facing a “number of challenges over the coming year,” he said in was “confident that Wienerberger will continue its sound development in the future.”

Business is developing well in France and Germany, even as Southeastern Europe and North America “remain difficult,” the CEO said. Wienerberger gets about 80 percent of its revenue from residential construction. The current crisis of the euro area doesn’t make people more likely to build houses, Scheuch said.

“If people are totally unsettled about the future -- politically, economically -- then they will refrain from new enterprises and wait,” Scheuch said. “If people don’t view the future with confidence we have problems.”

--With assistance from Boris Groendahl in Vienna. Editor: Zoe Schneeweiss

To contact the reporter on this story: Zoe Schneeweiss in Vienna at zschneeweiss@bloomberg.net

To contact the editor responsible for this story: Angela Cullen at acullen8@bloomberg.net


Best LBO Ever
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus