Wienerberger : reports strong operating result for Q1 2016

Revenue growth and higher operating EBITDA in European brick business

The Clay Building Materials Europe Division recorded a good start into the construction season in the first three months of the year, though with differences in performance observed between Eastern and Western Europe. Overall, Wienerberger was able to increase its clay block sales and strengthen its market position in a number of regions. The trend toward monolithic clay block walls without additional insulation for single- and two-family homes, observed in several of our core markets, had a positive impact. Roof tile sales were favored by mild weather conditions in large parts of Europe. A slight slowdown of activities in Great Britain and muted demand in Belgium made itself felt in our facing brick business. In combination with slightly higher prices, we were nevertheless able to increase the Division's revenues by 3% to € 342 million. Operating EBITDA improved significantly by 35% to € 30 million, a success attributable to our stringent cost management and the optimization measures introduced in prior years.

Pipes & Pavers Europe Division did not match previous year's performance
The Pipes & Pavers Europe Division was not able to repeat the good results achieved in 2015. In our pipe business, this was mainly due to the negative impact of the low level of orders placed for infrastructure projects in Eastern Europe. While operating EBITDA improved in our plastic pipe businesses, a downward trend was reported for ceramic pipes. Our business in concrete pavers was affected by weather-related delays in project execution. Thus, the Division's revenues dropped by 9% to € 203 million in the first quarter. Operating EBITDA also declined slightly by 4% to € 14 million.

North America Division benefits from higher number of new housing starts
In the North America Division we recorded increasing revenues and earnings. Unlike the first quarter of 2015, which suffered from harsh weather conditions, the first three months of 2016 were favored by a mild climate. Moreover, the increasing number of new housing starts in the single- and two-family home segment had a positive impact on our core business in facing bricks and led to significantly higher sales. Our North American plastic pipe business also reported higher sales volumes. Overall, the Division generated revenues in the amount of € 63 million, up by 18%, and operating EBITDA of € 2 million, which is more than double the previous year's first-quarter figure.