Wienerberger AG

Wienerberger with strong growth in the first half of 2018 - Seite 2

Business performance at Division level

European brick business: Significant earnings growth in Eastern Europe
In the first half of the year, Wienerberger's European brick business delivered improved revenues and earnings. The company's strong position in the Eastern European growth markets was reflected in notable double-digit revenue and earnings growth in the region. Business in Western Europe remained stable at the previous year's level. The consistent implementation of measures aimed at improving profitability led to a highly satisfactory rise in organic EBITDA. In total, the Division's revenues came to Eur 918.7 million in the first half of 2018, up by 6% from the first half of 2017. At Eur 158.7 million, EBITDA was 7% higher than in the comparable period of the previous year.

Pipes & Pavers Europe Division: Measures to improve earnings are taking effect
The Pipes & Pavers Europe Division succeeded in increasing its revenues by 7% to Eur 534.1 million in the first half of the year. Non-recurrent restructuring costs caused a drop in EBITDA from Eur 37.8 million to Eur 28.4 million. However, the consistent reorientation of operations in France have already led to improved earnings in the Western European plastic pipe business. All other improvement measures taken in 2017 and the first quarter of 2018 are producing results, e.g. in the ceramic pipe business. Relative to the comparable period of the previous year, revenues of the Division grew by 9% to Eur 315.0 million in the first quarter of 2018 and EBITDA rose significantly by 20% to Eur 37.4 million.

North America Division: Higher earnings and improved margins in all segments
Business in North America was marked by a steep increase in earnings in both bricks and pipes. This successful performance is due to the consistent reorientation of the Division over recent years. Despite a currency-related reduction in revenues of 3% to Eur 149.3 million, EBITDA grew by 79% to Eur 23.6 million.

Strategic measures and outlook for 2018
Heimo Scheuch: "The strategic optimization of our portfolio is making good progress. Until 2020, we plan to generate a total value of up to Eur 150 million through the disposal of assets, including operational as well as non-operational assets. At the same time, in pursuit of our growth strategy, we recently took over a brick producer in the Netherlands, a pipe specialist in Norway and a paver plant in Romania. With a view to further attractive possibilities, we have earmarked approximately Eur 200 million for growth investments over the course of 2018."