Business News
Brickmaker Wienerberger to close more plants
Aug 18, 2009, 8:08 GMT
Vienna - Austrian brickmaker Wienerberger AG announced Tuesday it would expand its savings plan and close more plants as it reported a net loss of 204 million euros (288 million dollars) in the first half of the year.
As housing markets in the United States and Europe declined more strongly than expected, Wienerberger, one of the world's leading companies in the industry, said it would shut down a total of 26 factories this year. Previously, it had announced only 20 closures.
The net loss compared to a net profit of 99 million euros in the same period of last year.
The decline was in large part due to restructuring costs and write-downs of the company's premium value, after Wienerberger already shut or mothballed 18 plants in the first six months of this year and slashed some 1,000 jobs.
Operating profit plummeted by 94 per cent to 8 million euros, while revenue dropped by 29 per cent to 898 million euros.
In the second quarter, revenue went down by 22 per cent to 538 million euros.
Between April and June, the biggest regional declines in sales came from North America, down 39 per cent, and Central and Eastern Europe, down 27 per cent.
Wienerberger said it expected revenue to decline further until the end of the year.
'From today's perspective it is too early to speak of a recovery, since the economic outlook remains uncertain,' chief executive Heimo Scheuch said.
COMMENT
blog comments powered by DisqusLatest Headlines in Business
- 1. US unemployment drops further, but figures disappoint
- 2. Japan stocks down as euro debt outweighs positive US data
- 3. Iraq resumes oil flow after pipeline blast in Turkey
- 4. Spanish bond auction lifts eurozone worries, sinks Japan stocks
- 5. ECB holds rates, rules out early exit from emergency measures
Older Talkback
