PTA-AFR: Wienerberger AG: Wienerberger triples net result with Euro 69 million

Quarterly report according to article 87 section 6 BörseG

Vienna (pta007/09.11.2016/07:30) - Overview 1-9/2016

- Steep increase of net profit to Eur 68.7 million (1-9/2015: Eur 23.3 million)

- Group revenues nearly stable at Eur 2.3 billion

- Operating EBITDA of Eur 302.6 million (1-9/2015: Eur 293.4 million)

- Foreign exchange effects impact revenues and earnings

- 9% organic EBITDA growth, adjusted for foreign exchange effects

Business development by Division

- Clay Building Materials Europe: Strong performance in Eastern Europe and satisfactory level of activities in Western Europe

- Pipes & Pavers Europe: Growth in the Nordic markets; earnings depressed by low infrastructure order intake in Eastern Europe and weak international project busi-ness in plastic pipe segment

- North America: Highly satisfactory development of US brick business and activities in Canada

Outlook for 2016

- Market trends expected to continue

- Target of Eur 405 million operating EBITDA, before FX effects, is maintained

- Negative FX effects of approx. Eur 10 million will reduce earnings target

Wienerberger Group on track during first nine months of 2016

Wienerberger AG remained on track throughout the first nine months of 2016. In total, the Group generated nearly stable revenues of Eur 2,279.7 million. Operating EBITDA amounted to Eur 302.6 million, up by 3% from the same period of the previous year. Since the beginning of the year, Wienerberger's net profit increased significantly to Eur 68.7 million, as compared with Eur 23.3 million in the previous year.

Steep rise in net profit and satisfactory development of revenues and earnings

Commenting on the results achieved, Heimo Scheuch, CEO of Wienerberger AG, notes: "Most of the trends seen during the first six months continued in the period from July to September. Thus, the third quarter performance of the Wienerberger Group was in line with our expectations. We were able to increase our sales moderately and obtain slight price increases. We are particularly happy to report that our net profit, as compared with 2015, has almost tripled since the beginning of the year. The development of revenues and earnings is highly satisfactory as well - especially against the backdrop of negative foreign exchange effects, primarily from the British pound. Adjusted for this effect, we generated 1% organic revenue growth and achieved a 9% increase in operating EBITDA. This confirms that we are well on track, despite the challenging market environment for our Eastern European infrastructure business. The strong performance of our plastic pipe business in the Nordic markets as well as growth in our brick business in Europe, the USA and Canada were among the main factors accounting for the positive development."

Business development by Division

Clay Building Materials Europe: 2% increase in revenues and 15% EBITDA growth

Residential construction in Europe trended slightly upward during the first nine months of the year. Especially the development in Eastern Europe stayed strong. Wienerberger benefited from the pickup of the residential construction market in the region and was able to further increase the sales of clay blocks and roof tiles. Combined with slightly improved average prices, these developments led to a significantly higher operating result. Western Europe remained at a highly satisfactory level, although the strongly diverging regional trends observed earlier in the year continued. Positive developments were seen in the German, Dutch and French housing markets. Product deliveries in Belgium declined during the first six months of the year, but picked up again in the third quarter. After Great Britain's vote to leave the European Union, the UK brick and roof tile market developed better than expected, as ongoing housing projects were completed and inventories along the supply chain returned to normal. As a result, facing brick sales exceeded the previous year's volume, and also the roof tile business performed better than in 2015 in the UK. In contrast, our continental roof tile business fell short of the previous year's results, which was primarily due to spending restraint in the renovation market, an important driver of the roofing business. Altogether, the Clay Building Materials Europe Division generated revenues of Eur 1,277.8 million from January to September 2016, up by 2% from the same period of the year before. Operating EBITDA increased sharply by 15% to Eur 216.9 million during the reporting period.

Drop in revenues and earnings reported by Pipes & Pavers Europe Division

Business in the Pipes & Pavers Europe Division was influenced by two main factors: On the one hand, some regions and countries, such as the Netherlands, Austria and the Nordics, reported satisfactory developments. On the other hand, Wienerberger continued to be confronted with a weak order situation in Eastern European infrastructure business and in the international business of our plastic pipe activities. This had a negative impact on the Division's revenues and operating EBITDA. Revenues therefore declined by 5% to Eur 772.8 million in the first nine months of the year. Operating EBITDA dropped by 10% to Eur 83.2 million over the same period.

Continued positive development of North American and Canadian brick business

The US brick business and our activities in Canada were highly satisfactory in the third quarter of 2016. Owing to intensive competitive pressure, the result of the North American plastic pipe business however remained below the previous year's level. In total, the North America Division reported a 5% increase in revenues to Eur 220.3 million in the first nine months of the year. Despite the strong organic growth, the Division's EBITDA, amounting to Eur 17.5 million, stayed below the previous year's level, mainly due to significantly lower contributions to earnings from real estate sales. Adjusted for these effects, the Division reported 25% organic earnings growth.

Outlook and strategy

Looking to the year as a whole, Wienerberger expects a slightly positive development of new residential construction in Europe. Above all, the positive trends seen in Eastern Europe are projected to continue, whereas Western Europe will still be marked by strongly diverging developments. Overall, a significant increase in earnings is forecast for the Division Clay Building Materials Europe for the full year. In the pipe segment, no major changes in the development of business are foreseen for the fourth quarter. Consequently, Wienerberger expects the Pipes & Pavers Division to close the year with a decrease in earnings. The positive development of the brick business in North America and Canada is likely to continue, whereas the earnings are expected to remain weak in the US plastic pipe segment. Overall, however, the North America Division is projected to achieve both revenue growth and a significant improvement in earnings.

Ambitious growth target for 2016 confirmed

In conclusion, Heimo Scheuch confirms: "Despite challenging economic developments in our markets, the results of the first three quarters make us optimistic. Thanks to its consistent focus on innovation, optimization and diversification, the Wienerberger Group is well positioned. In operational terms, we are very well equipped to achieve our ambitious earnings target of Eur 405 million for 2016. However, this operational earnings target will be reduced by foreign exchange effects in the amount of approx. Eur 10 million."

For the complete report on the first nine months of 2016, please visit www.wienerberger.com.

The Wienerberger Group

Wienerberger is the world's largest producer of bricks (Porotherm, Terca) as well as the market leader in roof tiles (Koramic, Tondach) in Europe and concrete pavers (Semmelrock) in Central and Eastern Europe. In pipe systems (Steinzeug-Keramo and Pipelife plastic pipes), the company ranks among the leading suppliers in Europe. With a total of 202 production sites, Wienerberger generated revenues of Eur 2,972 million and operating EBITDA of Eur 370 million in 2015.

For additional information, please contact:

Karin Steinbichler, Head of Corporate Communications Wienerberger

T +43 1 601 92 - 10149 | communication@wienerberger.com

Klaus Ofner, Head of Investor Relations Wienerberger AG

T +43 1 601 92 - 10221 | investor@wienerberger.com

If you do not wish to receive the Wienerberger newsletter any longer, send an e-mail with subject: "unsubscribe newsletter" to communication@wienerberger.com.

Wienerberger AG is a pure free float company, whereby the majority of shares are held by Austrian and international institutional investors. Additional information on the shareholder structure is provided under http://www.wienerberger.com/investor-relations/the-wienerberger-share/the-wienerberger-share/shareholder-structure.

1) Cash flow from operating activities less cash flow from investing activities plus growth capex

2) Equity including non-controlling interests and hybrid capital

web publication: http://www.wienerberger.com

publication date: 09.11.2016

(end)

emitter: Wienerberger AG

address: Wienerbergstraße 11, 1100 Wien

country: Austria

contact person: Karin Steinbichler

phone: +43 1 60192-10149

e-mail: communication@wienerberger.com

website: www.wienerberger.com

ISIN(s): AT0000831706 (share)

stock exchanges: official trade in Vienna

[ source: http://www.pressetext.com/news/20161109007 ]