SIG PLC VIENNA (Reuters) - Wienerberger (>> Wienerberger AG), the world's biggest brickmaker, reported flat second-quarter sales and operating profit, as declines in French and Dutch homebuilding proved steeper than expected.
Revenues were 765 million euros (0.61 billion pounds), below the lowest estimate in a Reuters poll of analysts whose forecasts averaged 788 million euros, while operating profit was 54 million euros, also below the consensus range.
Wienerberger stuck to its forecast to return to net profit this year and raise earnings before interest, tax, depreciation and amortisation (EBITDA) to about 300 million euros, plus 15 million from newly acquired Tondach, from 257 million in 2013.
Second-quarter EBITDA rose 3 percent to 107 million euros, Wienerberger said on Tuesday, while net profit rose 52 percent to 29 million euros, helped by cost cuts planned to total 17 million euros this year.
Other European building materials suppliers including Britain's SIG Plc (>> SIG plc) have reported variable conditions in mainland Europe, where economic recovery is fragile, while government incentives are driving the UK market.
Wienerberger said Britain had developed more strongly than expected, and margins were rising there due to improved capacity utilisation, but this had not been enough to outweigh weakness in many parts of continental Europe.
Wienerberger makes about 90 percent of its sales in Europe.
"I believe we will reach the bottom in the Netherlands this year, but in France I believe there are still difficult times ahead," Chief Executive Heimo Scheuch told journalists.
The French economy was flat for the second quarter in a row in the three months to end-June, while the Dutch economy grew just 0.5 percent and home prices fell 20 percent.
The recovery of new residential markets in Germany and the United States was slower than expected, Wienerberger said, and prices in the United States remained under pressure despite volume growth.
(Reporting by Georgina Prodhan; Editing by Michael Shields)
