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| Brick-maker Wienerberger reports 29% drop in revenues The world's biggest brick maker, Wienerberger of Austria, recorded a 29% drop in revenues to € 898.1 million for the first six months of 2009. After a weather-related very weak first quarter (-37% year-on-year in revenues), the second quarter decline was more moderate in comparison (-22%). Results for the first half-year were the consequence of a stronger-than-expected downturn on new residential construction markets across Europe and North America in the wake of the global economic and financial crisis. The loss of consumer confidence and above all a lack of financing have notably slowed the pace of new construction. A drop in sales volumes, lower average prices and costs arising from extensive standstills throughout the Group's plant network to reduce inventories as part of active working capital management triggered a decline in operating earnings for Wienerberger: operating EBITDA (before restructuring costs) fell by 57% to € 100.6 million and operating EBIT by 94% to € 7.8 million for the first six months of 2009. Profit after tax was negative at € -204.0 million, above all due to € 59.1 million of restructuring costs for optimization measures as well as € 28.1 million of impairment charges to property, plant and equipment from the write-down of real estate and € 125.4 million of impairment charges to goodwill. Wienerberger expects a further drop in revenues and earnings during the second six months of 2009, but these declines should be more moderate than the first half-year because of the lower prior year values. write your comments about the article :: © 2009 Construction News :: home page |