04.11.2003 – 07:42

SW Umwelttechnik Stoiser & Wolschner AG

euro adhoc: SW Umwelttechnik Stoiser & Wolschner AG
Quarterly or Semiannual Financial Statements
SW Umwelttechnik unveils results für first three quarters of 2003 (E)

  Disclosure announcement transmitted by euro adhoc.
  The issuer is responsible for the content of this announcement.

* Strong third quarter brings 14% revenue growth
* EBIT up due to robust demand for products of Infrastructure
  sector in Hungary
* Croatia, Romania, Slovakia and Slovenia generated 4% of 
  revenue

SW Umwelttechnik posted a 22% year-on-year gain in revenue from EUR
21 million (m) to EUR 25.6m in the third quarter of 2003. Over the
first three quarters revenue advanced by 14%, from EUR 48.6m to EUR
55.3m. This improvement was driven by further inroads in the
Hungarian market, which more than compensated for contracting
Austrian and German demand. Hungarian sales as a proportion of
overall revenue rose from 60% to 68%, while Austrian sales shrank
from 32% to 23%, and those to other EU member states from 7% to 5% of
the total. Concerted marketing drives lifted the joint contribution
of Croatia, Romania, Slovakia and Slovenia from 1% to 4%.

Due to their strong performance in Hungary the revenue contributions
of SW Umwelttechnik’s Infrastructure and Engineering business sectors
expanded from 33% to 36%, and from 29% to 34%, respectively. That of
the Water Conservation sector fell from 39% to 30% owing to the
difficult trading environment in Austria and Germany.

Due to the strong third quarter, earnings before interest and tax
(EBIT) for the first three quarters also progressed, rising by 55% to
EUR 1.9m (Q1-Q3 2002: EUR 1.2m) and thereby making up the ground lost
in the first half of the year. The recovery in EBIT would have been
still more impressive had it not been for the cost of closing the
German site (EUR 0.5m) and the weakness of the Austrian market. These
factors caused EBITDA to dip from EUR 5.5m to EUR 4.8m.

Finance cost climbed from EUR 0.3m to EUR 2.0m. This reflected
exchange losses relating to the euro denominated financing of some
Hungarian investments, and the effect of the EUR 0.8m proceeds of the
disposal of a minority interest in a Hungarian company in the like
period of 2002. The deterioration in finance cost led to a loss on
ordinary activities of EUR 0.1m, compared to a profit of EUR 0.9m in
the third quarter of 2002.

Despite the growth in revenue the company’s head count was almost
unchanged at 779 as of 30 September (previous year: 785).

Capital expenditure

EUR 4,1m of SW Umwelttechnik’s EUR 4.5m annual investment budget was
spent in the first three quarters of 2003.

The main focus of investment activity was Hungary, to which 76% of
all capital expenditure was channelled. Much of the money went to
ramping up production at the new factory to the south of Budapest.

Strategy and outlook

In the light of the strong third quarter management anticipates
year-on-year improvements in revenue and earnings for 2003 as a
whole. However the increased finance cost due to the devaluation of
the forint against the euro, and the expenses arising from the German
plant closure will result in slightly negative earnings per share.

SW Umwelttechnik will continue to push ahead with its Central Europe
expansion strategy. The following factors are likely to colour the
medium-term outlook:

• Public spending cuts in Hungary due to the high budget deficit are resulting in the postponement of major environmental investments. However the government remains committed to complying with EU environmental standards in the medium term, which is a clear condition of accession. The fall in order backlog from EUR 28m to EUR 21m chiefly reflects lower order bookings by the Engineering sector in Hungary.
• As the Infrastructure sector does not depend on public finance it is not affected by the budget restrictions, and is continuing to profit from the construction boom in Hungary. Thanks to the new south Budapest works the company is well placed to meet the growing demand for the infrastructure products.
• In Austria SW Umwelttechnik’s standard products are likely to continue to suffer from the present harsh trading conditions. However new products such as biogas plants, spun concrete masts and surface water protection systems mean that SW Umwelttechnik is not entirely at their mercy.
• SW Umwelttechnik will continue to use its existing production facilities in Croatia, Romania, Slovakia and Slovenia as a platform for sales growth, and is working to develop these markets.

end of announcement        euro adhoc 04.11.2003

Further inquiry note:

DI Heinz Wolschner, Vorstand der SW Umwelttechnik
Tel.: 0043/463/32109-0, Fax: 0043/463/37667
MMag. Christian Riel, Finanzen/Investor Relations
Tel.: 0043/664/4337105, Fax: 0043/1/3688686,
mailto:christian.riel@sw-umwelttechnik.at
Website: http://www.sw-umwelttechnik.at

Branche: Technology
ISIN: AT0000808209
WKN: 080820
Index: ATX Prime, ViDX, WBI
Börsen: Wiener Börse AG / official dealing
Berliner Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Baden-Württembergische Wertpapierbörse / free trade