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. 72% revenue growth
. EBIT up by E2 million
. Return to the prime market
. Accelerated expansion in Romania
SW Umwelttechnik turned the good weather to its advantage to put in
a bright start to the year, recording first quarter revenue growth
of over E6 million (m) and a E2m improvement in EBIT. Meanwhile
the group forged ahead with investment projects in Romania and
SW Umwelttechnik grew revenue by 72% to E16.0m (Q1 2006: E9.3m) in
the first quarter of 2007. Favourable weather conditions
contributed to rapid revenue growth across all the group's
business sectors, while revenue in its new Romanian market
Revenue rose by 79% in Hungary, by 178% in Romania and by 26% in
Austria, year on year. In terms of geographical markets, 71% of
total revenue was earned in Hungary (Q1 2006: 69%), 9% in Romania
(Q1 2006: 6%), and 15% in Austria (Q1 2006: 21%). The fall in
the proportion of revenue originated in Austria reflected last
year's factory closures. There were only minor shifts in the
segmental revenue breakdown. Water Conservation accounted for 31%
(Q1 2006: 26%) of total revenue, Infrastructure continued to
dominate at 56% (Q1 2006: 64%) and Engineering contributed 13%
(Q1 2006: 10%).
Increased revenue boosted EBIT- historically weak in the first
quarter due to seasonal factors - and it was negative by only
E1.3m, compared to E3.3m in the like period of 2006.
With finance cost almost down to zero due to the rising Hungarian
forint and Romanian lei exchange rates, the loss on ordinary
activities narrowed by E3.6m to E1.4m (Q1 2006: E5.0m).
Employees The average number of employees edged down by 3%, from 786
to 760, despite the growth in the group's sales. The fall is
chiefly explained by the 20% drop in the Austrian head count.
Meanwhile the workforce in Romania expanded from 46 to 80.
Capital expenditure In the first quarter of 2007 capital expenditure
was E5.6m (Q1 2006: E2.1m).
Investment programmes in Hungary directed towards expanding
capacity in the Infrastructure and Water Conservation sectors
were completed during the quarter. The spun concrete plant in
Alsoszolca and the new facility for manufacturing prestressed
bridge members at the South Budapest site entered service on
In Romania the Timisoara plant was finished, and production ramped
up to full capacity. Construction of the new factory in
Bucharest is going to plan, despite delivery delays due to
the building boom. Preparations for the application for planning
permission in Targu Mures are under way. At the same a search has
been launched for a fourth site in eastern Romania, and is due to be
concluded by the end of the year.
In Austria the machinery relocations and resultant capacity
expansions were completed on schedule in May.
Order backlog Exceptionally high output due to favourable weather
conditions meant that order backlog was worked off unusually
quickly, and it was slimmed to E26.1m from E51.6m a year
earlier. The Infrastructure sector's order books were also
affected by changes in the product mix. Nevertheless, management
currently expects the sector's revenue target for 2007 to be
exceeded. However revenue in the Engineering sector is seen
declining as the large contracts under the Hungarian
Environment and Energy Operational Programme (KEOP) are not
anticipated until the second half of the year. Overall, SW
Umwelttechnik's total output should certainly be on target.
Balance sheet The heavy investment program swelled non-current assets
from E46.7m to E62.1m, while revenue growth buoyed current assets
to E44.9m (Q1 2006: E33.1m). Total assets rose by 34% to E107.0m
(Q1 2006: E79.8m). Financial liabilities climbed from E42.7m to
E58.6m due to borrowing to finance expansion. The marked improvement
in retained earnings was reflected in a 39% increase in equity
from E18.5m to E25.7m.
Share price performance SW Umwelttechnik's return to the prime
market segment of the Vienna Stock Exchange on 21 May 2007
reflected the market confidence that has brought a share price
run-up of almost 200% since the start of the year. Capital Bank
will act as the specialist for SW Umwelttechnik's stock. The price
reached an all time high of E125 in May, driven by investors'
faith in SW Umwelttechnik's strategy of accelerated expansion in
Outlook On the light of the promising outlook on all the
markets served by SW Umwelttechnik, the large-scale investment
programme and the successful completion of the restructuring
exercises, management anticipates 75% year-on- year growth in EBIT,
EBITDA and POA on roughly stable revenue for 2007 as a whole.
@@start.t2@@. In Austria restructuring programmes have already brought a significant
improvement in earnings in the first quarter.
. In Hungary capacity utilisation was particularly good in the first quarter
thanks to the mild weather. SW Umwelttechnik will use its high installed
capacity and the cost leadership afforded by its modern equipment to
continue to extend its market leadership.
. In Romania the Timisoara site is fully operational, while the first phase
of the Bucharest project is scheduled for completion in September, when
the production equipment for infrastructure products is due to be
commissioned. A second development phase involving manufacturing equipment
for water conservation products is scheduled for completion by the end of
the year. Building work at the Targu Mures site in central Transylvania is
scheduled to begin near the end of 2007, and a suitable fourth location in
eastern Romania is expected to have been identified by then.
. A start is being made with market development in neighbouring Moldavia,
Serbia and Ukraine, using exports from Hungary and Romania. Preparations
are also being made to purchase land to build production facilities in
these countries. If market entry is successful, the aim is to build one to
two plants there each year.
. The disposal of property surplus to operational requirements, often
acquired in connection with investments, will make an additional ongoing
contribution to earnings and financing.
The group's recent strong performance and the positive outlook for the next few@@end@@
years give SW Umwelttechnik an excellent springboard for its drive to
expand in Romania and its new focus markets.
In Em Q1 2007 Q1 2006
Revenue 16.0 9.3
EBIT -1.3 -3.3
EBITDA -0.2 -2.3
POA -1.4 -5.0
In Em Q1 2007 Q1 2006
Non-current assets 62.1 46.7
Current assets 44.9 33.1
and liabilities 107.0 79.8
Equity 25.7 18.5
Borrowings 81.3 61.3
whereof bank loans 58.6 42.7
@@start.t3@@end of announcement euro adhoc 23.05.2007 08:46:48
ots Originaltext: SW Umwelttechnik Stoiser & Wolschner AG
Im Internet recherchierbar: http://www.presseportal.ch
Further inquiry note:
Dr. Bernd Wolschner, member of the Management Board
Tel: +43 (0)664 3413953; fax: +43 (0)7259 31356
Michaela Wolschner, Investor Relations
Tel: +43 (0)664 8117662; fax: +43 (0)1 8772617
Börsen: Börse Berlin-Bremen / free trade
Frankfurter Wertpapierbörse / free trade
Wiener Börse AG / Regulated free trade