Wienerberger quarterly report, revenues reach 333.8 million euro

May 29, 2003

Wienerberger quarterly report, revenues reach 333.8 million euro29/05/2003 - The Wienerberger Group, the leading world manufacturer of bricks and Europe's second largest roof tile producer, has reported a successful first quarter of 2003. In spite of the fact that building materials industry earnings are highly dependent on the weather in key markets, the Austrian Group's profits were slightly higher than those of the same period last year.
Group revenues rose by 6% to 333.8 million euro. This good result was largely due to the acquisition of Koramic Roofing, consolidated as of 9 January 2003, which contributed 19.6 million euro to the Group's overall turnover. After adjustment for this acquisition, Group revenues remained stable in prior year comparison. Operating EBITDA for the Group rose by 2% to 42.5 million euro.
These results were supported by 3.7 million euro in earnings from the Koramic roofing business. In addition, a book gain of 1.8 million euro was recorded on the sale of two non-operating properties in the Netherlands. Group EBIT fell 23% below the prior year value.

Higher financing costs for the Koramic Roofing acquisition led to a decline in financial results from -10.2 to -11.6 million euro. Gross cash flow for the first quarter of 2003 reached 11.6 million euro.

With the acquisition of Koramic, the Group has now established clay roof tiles as a second core business (see "Roofing Systems" in the in-focus section), and in 2003 will concentrate on the development of the following product areas: hollow bricks for load-bearing and interior walls, facing bricks for facades, clay and concrete products for surface paving, and clay tiles for roofing.

The forecasts for the current year are continued weakness in Western Europe, slight growth in Eastern Europe, and a strong number of housing starts in the USA. At present the Group is constructing brick plants in Romania, Poland, and the USA and adding a further roof tile line in Germany. The Pont de Vaux hollow brick plant in France is already in the start-up phase.

The in-focus section contains the economic results of the first quarter divided up by segment and geographical area along with a short info sheet on the Roofing System segment.

Go to turnovers of other listed companieslogo_wienerberger.gifBricks in Central and Eastern EuropeBricks in Central and Eastern Europe

Brick segment results in nearly all Central and Eastern European countries were negatively influenced by the long winter. Revenues declined by 7% to 48.9 million euro, and EBITDA fell by 23% to 10.1 million euro.
In Croatia, Poland, Slovakia and Bosnia-Herzegovina sales volumes increased, while the other markets recorded lower sales volumes due to unfavourable weather conditions.
The weak economy in Poland led to significant pressure on prices. Semmelrock pavers also reported a weather-related drop in revenues and earnings.Bricks in Western EuropeBricks in Western Europe

Revenues in Western Europe rose by 17% over the comparable prior year level to 121.7 million euro and EBITDA increased by 32% to 16.2 million euro.
A decisive factor for this growth was the integration of Hanson BCE (a UK-based clay product manufacturing group) and the sale of two non-operating properties in the Netherlands.
In Germany the higher price level had a negative effect on the current quarterly comparison because advance purchases prior to the announced price increases strongly influenced sales volumes in the first three months of 2002.Bricks in the USABricks in the USA

In the USA revenues declined by 19% to 50.8 million euro and EBITDA fell by 29% to 7.2 million euro, in particular due to an 18% drop in the value of the dollar.
The long winter led to a postponement in the start of the building season throughout large sections of the USA, which led to lower utilization of capacity and a decline in earnings.
However, a significant upward trend in sales volumes was noted in April.The Roofing System segmentThe Roofing System segment

Following the acquisition of a 50% stake in Koramic Roofing, consolidated as of 9 January 2003, the second core business of Roofing Systems was established in the Wienerberger expansion strategy. This segment now comprises Koramic Roofing and Bramac at a proportional share of 50% (Koramic Roofing produces clay roof tiles and Bramac concrete roof tiles).
Tondach Gleinstatten, which also produces clay roof tiles, is consolidated at an equity share of 25%. The segment also includes ZZ Wancor, the Group's wholly owned subsidiary in Switzerland, which produces clay roof tiles and hollow bricks. Revenues in the Roofing Systems segment increased by 77% to 37.8 million euro. EBITDA improved from 1.8 to 6.0 million euro.

Koramic Roofing was consolidated at 50%, generated revenues of 19.6 million euro and EBITDA of 3.7 million euro from January to March. The Group's Swiss subsidiary recorded slight declines in sales volumes of clay roof tiles, but satisfactory volume and price increases in hollow bricks.
The 50% joint venture Bramac also recorded volume declines, but was able to offset part of this decline with higher prices.Wienerberger quarterly reportwienerberger.pdf