Business News

Brickmaker Wienerberger goes into the red in the first quarter

May 6, 2009, 7:52 GMT

Vienna - Wienerberger AG, one of the world's leading brickmakers, on Wednesday reported it had gone into the red in the first quarter with a net loss of 61 million euros (82 million dollars), as demand plummeted particularly in Central Eastern Europe. The Austrian company had made a net profit of 30 million euros in the first three months of 2008. The recent shutdown of nine plants and the associated restructuring costs led to quarterly operating losses of 29 million euros, compared with positive earnings before interest and taxes (EBIT) of 43 million euros in the same period of last year. Sales dropped by 37 per cent to 360 million euros, owing to bad weather conditions and weaker markets. In Central and Eastern Europe, where currency devaluations added to the negative effects, revenue plummeted by 54 per cent to 93 million euros. Wienerberger said it expects volumes to continue declining less sharply in the economically more stable Poland, the Czech Republic and Slovakia, than in Hungary, Romania and Russia. While the situation in Western Europe is also expected to deteriorate further, Wienerberger's management is slightly optimistic about North American markets. Chief operating officer Johann Windisch said that 'stabilization may be possible after this summer since we already saw an extremely low level of residential construction during the second half of 2008.' The brickmaker has closed 27 plants in 2008 and has started shutting down 20 more this year.

Business News

Brickmaker Wienerberger goes into the red in the first quarter

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