|
contents | business | |||||||||
| Wienerberger announces fourth-quarter and full-year 2013 financial results Wienerberger, the world's biggest brickmaker, announced results for the 2013 financial year. Revenues rose by 13% to € 2.7 billion and operating EBITDA by 9% to € 266.5 million. This sound growth was realized in an ongoing difficult market environment. Business development in Europe was negatively influenced by unusually severe weather during the first six months and by general weakness in the construction industry throughout the entire year. Although this region is responsible for roughly 90% of revenues, Wienerberger generated a sound increase in revenues and earnings during 2013. Growth was driven, above all, by the positive contribution from the pipe business and solid development in North America. "2013 was a successful year for the Wienerberger Group. In addition to the sound development of earnings in a difficult market environment, we met all our ambitious operating and financial goals. We also expanded our market positions in a number of countries. The restructuring measures launched in 2012 were implemented as planned during the past year, and net debt was reduced substantially by financial discipline and strict working capital management. The ratio of net debt to operating EBITDA equaled two years at the end of 2013, which is clearly lower than our internal target of less than two and one-half years. Even through the bottom line shows a small loss of € 8 million, we again demonstrated the strength of our business model by generating free cash flow of € 93 million in the past year", commented Heimo Scheuch, Chief Executive Officer of Wienerberger AG, on the development of business in 2013. The third quarter trends continued during the final quarter of 2013. Revenues reached € 628.7 million and were up by 3% compared to the third quarter of the previous year. Operating EBITDA rose by a significant 27% over the last three months of 2012 to € 56 million in the fourth quarter of 2013. The Clay Building Materials Europe Division recorded an increase of 3% in revenues to € 337.0 million and 43% in operating EBITDA to € 39.8 million in the fourth quarter of 2013, compared with the weather-related weaker results in the previous year. Mild weather in large parts of Europe during November and December 2013 had a positive effect and led to higher volumes in all of the division’s product groups. The Pipes & Pavers Europe Division reported an increase of 2% in revenues to € 236.9 million and a 20% improvement in operating EBITDA to € 19.6 million. This growth was supported, above all, by sound operating results from Pipelife and Semmelrock because of better weather conditions compared with the previous year. In the North America Division, revenues rose by 3% over the comparable prior year period to € 53.5 million. Operating EBITDA fell from € 4.2 million in 2012 to € 3.6 million due to non-recurring effects in the reporting period. Wienerberger’s goal is to continue its growth course in 2014. Heimo Scheuch explained: “We are targeting a substantial increase in revenues and earnings for the full year as well as a return to the profit zone. I am expecting operating EBITDA of roughly € 300 million in 2014. The new residential construction market in Europe should stabilize or grow slightly, and the positive trend in the USA should continue. In the plastic pipe business, I cannot exclude a slight decline in operating earnings because it will be difficult to duplicate the good volumes from the project business in 2014. Our focus remains on financial discipline, which means the generation of free cash flow, an increase in profitability through continuous optimization, a restrictive investment policy and organic growth based on innovative, high-quality product solutions. We have budgeted € 125 million for normal capex in 2014, which includes maintenance as well as technological improvements. Plans call for the redemption of our bond in July 2014 from available cash balances, which should reduce interest expense. The ratio of net debt to operating EBITDA is also expected to remain below the targeted 2.5 years. The sale or development of non-core real estate should produce approx. € 75 million of additional liquidity by 2016. Within our financial capacity, we will also evaluate selective opportunities for smaller, value-creating acquisitions in the future.“ In the operating business, Wienerberger intends to continue its focus on organic growth over the coming years. The Group is planning to use its innovative strength, premium system solutions for building materials and comprehensive services to drive growth and expand market positions. Wienerberger is working continuously on solutions to offer its customers comfortable, energyefficient living and supply security for water, electricity and gas. For example, one of the Group‘s top products – a mineral wool-filled clay block – has been successfully positioned in Germany and is now being rolled out in other countries. A new filling line for the production of Wienerberger’s future-oriented clay blocks started in Austria in the second half of 2013 and a similar production line will be started in the Czech Republic in the first quarter of 2014. This will create opportunities for further growth in these markets. “The investments in these production lines are comparatively low, but they form the basis for strengthening our market positions. That makes these investments a key part of Wienerberger’s future growth strategy and the course we also want to follow in the future“, added Heimo Scheuch in conclusion. write your comments about the article :: © 2014 Construction News :: home page |