Wienerberger reports 23% growth in 2012

Wienerberger, a leading Austrian brick and roof tile manufacturing group operating 226 factories in 30 countries worldwide, has reported very positive 2012 results. Consolidated revenues grew by 23% to 2.4 billion euro, while gross operating margin totalled 246 million euro, 2% up on 2011. In spite of the drop in turnover in European countries, the recovery of the US construction market has significantly boosted results (the North American branch reported 43% growth). Pipelife, an Austrian manufacturer of plastic pipes with a presence in 27 countries acquired by the group in May 2012, also made a strong contribution to turnover (479 million euro). In spite of the substantial investments required for the acquisition, Wienerberger succeeded in generating a cash flow of € 164 million (compared to € 135 million in 2011) as a result of a strict management of working capital.

The Bricks & Tiles Europe division generated revenues of 1,444 million euro, a fall of 6% (corresponding to an 11% decrease in volumes). This was due to the sharp downturn in the construction sector throughout Europe, including a number of the Group's key markets such as Holland, Belgium, France and Poland. In response to the difficult economic climate and the increase in production costs, Wienerberger has succeeded in increasing its average prices (+4%) and volumes of premium products. The lower usage of production capacity and consequently the rise in unit production costs have adversely affected profits and resulted in a 22% fall in gross operating margin. An intensive restructuring programme that began in the third quarter of 2012 with the aim of optimising costs will allow for estimated savings in production costs of 50 million euro by 2014, including 14 million euro already made in 2012 and a further 18 million euro expected this year.

A total of 115 million euro has been earmarked for investments in new technologies and production innovation in 2013 with a view to generating further growth, as a result of which the group expects to increase its consolidated EBITDA to 280 million euro.