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| Wienerberger revenues weaker than expected  Vienna-based Wienerberger, the world's largest brickmaker, said on Thursday its revenues remained below expectations in the second quarter with a decline of 4% versus the comparable period of 2007. The growth in revenues totaled 3% for the first half of this year. However, it should also be noted that the exceptionally high second quarter results in 2007 were driven by a boom in Poland. Preliminary revenue figures indicate that a decline of roughly 10% in operating EBITDA for the first six months and a year-on-year decline in earnings for the full 12 months of 2008 are to be expected.The spread of the financial crisis to Great Britain triggered a slump in new residential construction beginning in April. Moreover, the contraction on the US market was stronger than expected with a 40% drop in housing starts since the beginning of this year. In Germany, where building permits reached a historical low in 2007, there is still no recovery in sight. Developments in Central-East Europe remained positive, but with weaker momentum on individual markets. The main growth drivers in this region are Bulgaria, Romania and Russia, while the demand for bricks in Poland continued at a high level. In the Czech Republic and Slovakia, the margin driven price strategy of Wienerberger and rising import activity by German brick producers was reflected in lower sales volumes. The Hungarian market for single- and two-family houses declined significantly in recent months as forecasted, after a surprisingly good first quarter. write your comments about the article :: © 2008 Construction News :: home page |