Wienerberger : reports a dynamic start into the business year 2018
May 09, 2018 at 01:41 am EDT
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Significant EBITDA growth in brick business
The Clay Building Materials Europe Division delivered a satisfactory performance in the first quarter. In a positive market environment, the Division succeeded in increasing its sales volumes as well as its average prices. Notable growth in revenues and earnings was recorded in the Eastern European brick business. Despite unfavorable weather conditions in March, business in Western Europe remained stable at the previous year's level. Overall, the Division generated a 4% increase in revenues to € 388 million and significant growth in EBITDA by 15% to € 48 million.
Higher revenues in infrastructure business - Earnings depressed by structural adjustment costs
An upward trend in demand was observed in the Pipes & Pavers Europe Division. However, owing to delays in project execution caused by cold weather conditions, the positive market dynamics was not fully reflected in the Division's earnings, which were depressed by structural adjustments in the ceramic pipe business in the amount of € 16 million. The operations in prewired electro conduits acquired in 2017 accounted for a satisfactory contribution, and the repositioning of the French pipe business advanced as planned. Against this background, revenues grew by 4% to € 219 million in the first three months of the year. The Division's EBITDA declined from € 7 million in the previous year to € -9 million in the reporting period.
North America Division - Growth in all business areas
In the first quarter, residential construction activity in the USA was hindered by unfavorable weather conditions. In this environment, Wienerberger recorded a drop in facing brick sales. However, thanks to the significant contribution by Columbus Brick, the recently acquired facing brick producer, and slight price increases, the Division was able to improve its earnings. The development of the North American plastic pipe business was satisfactory, as was the Division's business performance in Canada. Overall, revenues in the North America Division remained almost at the previous year's level in local currency, but were burdened by negative foreign currency effects, which reduced revenues in the reporting currency by 12% to € 65 million. At the same time, however, the division more than doubled its earnings to € 10 million, as compared to the same period of the previous year.
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Wienerberger AG published this content on 09 May 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 09 May 2018 05:40:00 UTC
Wienerberger AG is one of Europe's largest building materials producers. Net sales break down by family of products as follows:
- walls, ceilings and roofing (54%): perforated bricks, facing bricks, tiles (clay, concrete or chimney tiles). Wienerberger AG is the world's leading producer of bricks;
- pipes (27%): pipes for water conveyance and sewers and concrete floor tiles.
The remaining sales (19%) relate to activity in North America.
At the end of 2022, the group operated 216 industrial sites worldwide.
Net sales are distributed geographically as follows: Germany (6%), the United Kingdom (8.2%), the Netherlands (8%), Austria (5.8%), Poland (5.5%), France (5%), Europe (30.5%), the United States (17.4%) and other (13.6%).
WIENERBERGER AG 
