Business News
Brickmaker Wienerberger's quarterly profit shrinks by 83 per cent
Nov 6, 2009, 8:04 GMT
Vienna - Wienerberger AG, the world's biggest brickmaker, reported Friday that its net profit had dropped 83 per cent to 5.8 million euros (8.6 million dollars) in the third quarter, as lower demand and restructuring costs dragged down results.
The Austrian-based company said it would shut down five more plants in Hungary, Poland, Germany and the United States, in addition to the 26 factories being closed through the end of this year.
Revenue amounted to 518.5 million euros, 22 per cent below the third quarter of last year.
Sales volumes dropped significantly, especially in North America, where demand shrank by some 40 per cent. Drops were also recorded in Central and Eastern Europe.
Operating earnings before interest, tax, depreciation, amortization and restructuring costs went down by 40 per cent to 76.9 million euros.
'It is too early to speak of recovery from today's perspective because the economic environment is still difficult, but the measures we have implemented lead me to be more optimistic about 2010,' Wienerberger chief executive Heimo Scheuch said.
Wienerberger operates over 200 plants in 26 countries in Europe and North America.
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