SW Umwelttechnik Stoiser & Wolschner AG

euro adhoc: SW Umwelttechnik Stoiser & Wolschner AG
quarterly or semiannual financial statement
SW Umwelttechnik unveils third quarter results

@@start.t1@@--------------------------------------------------------------------------------   Disclosure announcement transmitted by euro adhoc. The issuer is responsible   for the content of this announcement. --------------------------------------------------------------------------------@@end@@

quaterly report

07.11.2007

SW Umwelttechnik unveils third quarter results

* POA up by E0.7 million * Third quarter order intake E42 million * E25 million investment programme close to completion

Vienna-listed Stoiser & Wolschner AG recorded a sharp rise in  order intake  to E42 million(m) in the third quarter of 2007. This pick-up in  business  signals an end to the subdued demand encountered in Hungary and Romania earlier  in  the year.

@@start.t2@@For  much  of  2007  trading  conditions  in  Hungary  were  shaped  by    budget consolidation measures which led  to  the  marked  reduction  in  public  sector orders. In Romania, urgently needed public sector  investment  was  held  up  by delays in the release of EU Structural Organisational  Programme  (SOP)  funding for environmental protection and infrastructure projects.

At E68.5m, revenue for the year to 30 September was only 3% short of the  figure for the like period of 2006 (E70.5m). However the trend in Hungary  and  Romania impacted EBIT more strongly, resulting  in  a  decrease  from  E2.5m  to  E2.0m;@@end@@

EBITDA held steady at E5.6m. POA for the first three quarters improved to  E0.6m from a loss of E0.1m in the previous year.

Revenue of E27.0m for the third quarter of 2007 was down on the E34.3m  recorded in the same  period  of  2006  -  an  exceptionally strong  quarter.  This  was reflected in falls in EBIT to E2.2m (Q3 2006: E3.7m) and in EBITDA to E3.5m  (Q3 2006: E4.9m).

Hungary's contribution to revenue for the first  three  quarters   declined  from E47.6m to E42.4m, slipping to 62% of the group  total (Q1-Q3  2006:  68%).  The proportion of the total accounted for  by   Austria  fell  from  24%  to  21%  as expected. Meanwhile Romania's share was up to 8% from 5% a year  earlier.  Other EU countries - chiefly Italy, Slovakia and Slovenia  -  contributed  9%  of  the total compared to 3% in the like period of 2006.

The group's Infrastructure sector put in another  highly  positive   performance, with  revenue  rising  to  E36.6m  (Q1-Q3  2006:   E33.4m).  However  the    Water Conservation and Engineering businesses returned lower revenue,  with  sales  in Hungary particularly hard hit. The Infrastructure sector's contribution  was up from 47% to 54%, while that of Water Conservation edged down from 30%  to  28%, and that of the Engineering sector's shrank from 23% to 18%.

An improvement in finance cost was driven by lower interest expense   and  modest exchange gains. Finance cost fell  to  E1.4m  from  E2.6m in  the  first  three quarters of 2006  when  this  item  was   affected  by  the  devaluation  of  the Hungarian forint. As a result POA turned positive  by  E0.6m,  compared  with  a E0.1m loss in the like period of 2006.

Employees The average head count dropped by 5%, from 821 to 777,  due to  rationalisation in Hungary (down by 7%) and Austria (down by   21%).  By  contrast  expansion  in Romania was reflected in an increase in the workforce from 55 to 90.

Hungary There was a general weakening in Hungarian  demand,  and   dramatic  declines  in wastewater disposal and road construction. According to  the  Hungarian  Central Statistical Office tenders in these segments ran at 70% of the  previous  year's level. SW   Umwelttechnik  again  significantly  expanded  its  shares  of  these smaller markets thanks to its cost leadership. The Water   Conservation  business sector has recently won a number of major orders including a contract to  supply products for the  collecting   sewer  in  Budapest.  It  involves  a  2-kilometre section beneath the bed of the Danube, which is  being  built  using  trenchless technology. Among other projects are a wastewater collection  system for  south Budapest, pipes and shafts for Debrecen, and a E5m drainage system  for  the  M7 motorway.

The Infrastructure sector also made strong progress,  and  sales  to industrial and commercial customers were up by 15% whereas the   overall  market  contracted by 11%.

Romania The Infrastructure  sector  is  experiencing  very  strong   demand  in  Romania, particularly from industrial and commercial customers. As already reported,  the first two phases of factory construction project in Bucharest for this  business are under way. A nationwide sales organisation has been built up,  resulting  in an overall increase in start-up losses. The effects  of  the  record   investment programme will not be felt until 2008 as commissioning is due to take  place  in November.

The current focus of the Water Conservation sector's activities is on supplying drainage systems for factories and business  parks.  SW   Umweltechnik  will  not receive large municipal orders for wastewater treatment plants until early  2008 when the SOP funding is released. EU  finance  for  the  2007-2013  period  will amount to E3.2 billion, starting at E390m in 2008 and rising to about  E500m  in subsequent years.

The Infrastructure sector has already won  contracts  to  supply   logistics  and shopping centres in Constanta, Targu Mures and Cluj with  products  to  a  total value of E17m, ensuring good capacity utilisation for the  group's  new  factory in the greater Bucharest area when it starts up this month.

Austria Following last  year's  restructuring  the  Austrian   operations  have  achieved turnaround, and earnings exceed expectations. The Water Conservation sector  has now won contracts   for  its  innovative  surface  water  protection  systems  in northern Italy.

Capital expenditure As at 30 September 2007 capital expenditure for the year amounted to  E20m.  The main items were construction of a   E9m  factory  in  Bucharest.  The  first  and second phases of  the   project,  to  provide  capacity  for  the  Infrastructure sector, are scheduled for commissioning in November 2007.

Investment in Hungary also amounted  to  E9m  over  the  first  three quarters. Relocation of large pipe production from the Csepel site to the  south  Budapest works  will  significantly  improve  efficiency. The  move  is  scheduled    for completion by the end of November.

Most of the E2m  invested  in  Austria  was  devoted  to  relocating plant  and equipment in the first half of 2007 following a plant closure.

Order backlog Third quarter order intake of E42m lifted order backlog to E41.5m as of the end of the third quarter, compared to E30.9m a year earlier. This marks a reversal of the decline in order backlog seen in the first half.

In 2008 large-scale EU funding programmes  such  as  the  SOP  in   Romania,  and strong demand for the Infrastructure sector's  products is  expected  to  bring excellent order bookings.

Balance sheet The  heavy  investment  programme  swelled  non-current assets  to  E71.7m  (30 September 2006: E51.1m), while inventory growth raised current assets to  E46.5m (30 September 2006: E44.8m). Total assets rose by 24% to E118.5m  (30  September 2006: E95.9m). Financial liabilities climbed from E51.1m to E67.9m due to borrowing to  finance expansion. The improved profit was reflected in a 25% increase  in  equity  from E21.6m to E26.8m.

Share price performance The decline in SW Umwelttechnik's share price from its high of E139 in May  2007 to its current  level  of  around E100  reflects  a  combination  of  unsettled financial markets and the fact that earnings have fallen short of  expectations.

Thanks to SW Umwelttechnik's clear  strategy  of  targeting  growth   markets  in Central and Southeastern Europe, and its rapid expansion driven by a very  heavy investment program in 2007, the share price is nevertheless more  than  150%  up on the start of the year.

Outlook As reported, management sees earnings for 2007  to  remain   at  about  the  same level as 2006. This is chiefly  due  to  the   sharp  decline  in  public  sector contract awards in Hungary and Romania during the first half.

@@start.t3@@. Austria: the turnaround  has  been  successfully  completed  and  capacity
         utilisation is very  high  at  all  sites  thanks  to  the  stable  market
         situation.
      . Hungary: SW Umwelttechnik's unchallenged market and  cost  leadership  has
         largely  cushioned  the  effects  of  weak  public  sector  demand.  Large
         contracts  for  sewerage  schemes  and  wastewater  treatment  plants  are
         expected to revive in 2008.
      .  Romania:  High  orders  of  products  for    industrial    and    commercial
         construction projects will underpin good  capacity  utilisation  when  the
         Bucharest plant starts up. Capacity utilisation in Timisoara  is  expected
         to rise sharply from mid-2008, as by then the SOP project funding will  be
         feeding through.@@end@@

Management's forecast of stronger earnings in 2008 remains in place due  to  the record investment programme implemented in  2007  and   the  marked  increase  in order intake in Romania.

Changes on the Management Board Heinz Wolschner will retire from the Management Board at the  end  of  2007.  In accordance with the corporate governance rules, he  will  not  immediately  move over to the Supervisory Board, despite the fact that this has been  approved by the Annual General Meeting. For the next three years he  will   oversee  property acquisitions and disposals, focusing  on  the   500,000  square  metres  of  land surplus to  operational   requirements  that  the  group  holds  in  Hungary  and Romania.

Klaus Einfalt has been appointed to the Management  Board  of  SW   Umwelttechnik Stoiser & Wolschner  AG  with  effect  from  January   2008.  Klaus  Einfalt,  an industrial building engineer,  has  played a  leading  role  in  expanding  the group's Hungarian operations, working his way up from  production  assistant  to plant manager and finally CEO. He has lived with  his  family  in  Budapest  for nine years. He is the first member of the fifth  generation  of  the   family  to join the top management.

|Financial        |        |              |
|highlights      |        |              |
|                      |        |              |
|Q3 2007          |        |              |
|                      |        |              |
|EUR m              |2007 |2006        |
|Revenue          |27.0 |34.3        |
|EBIT                |2.2  |3.7         |
|EBITDA            |3.5  |4.9         |
|POA                 |0.3  |4.2         |
|                      |        |              |
|Q1-Q3 2007      |        |              |
|                      |        |              |
|EUR m              |2007 |2006        |
|Revenue          |68.5 |70.5        |
|EBIT                |2.0  |2.5         |
|EBITDA            |5.6  |5.7         |
|POA                 |0.6  |-0.1        |

Founded in 1910, SW Umweltechnik remains a family business, though it has  been listed  on  the  Vienna  Stock  Exchange  since  1997.  The company  is  widely identified with sustainable  enterprise  and   rapid  expansion  in  Central  and Southeastern  Europe.  Its   innovative  environmental  technology  products  are contributing  to infrastructure  renewal  in  CSE    countries.    In    2006    SW Umwelttechnik employed a total of 836 people at 16 sites and posted   revenue  of E102m.

@@start.t4@@end of announcement                                                 euro adhoc 07.11.2007 08:03:57
--------------------------------------------------------------------------------@@end@@

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)7259 31350
Mobile: +43 (0)664 3413953
Fax: +43 (0)463 37667

Romed Lackner
Investor Relations Officer
Tel: +43 (0)664 8117670
Fax: +43 (0)463 37667170
E-mail: romed.lackner@sw-umwelttechnik.com

Website: www.sw-umwelttechnik.com

Branche: Technology
ISIN:      AT0000808209
WKN:        910497
Index:    WBI
Börsen:  Börse Berlin / free trade
              Börse Frankfurt / free trade
              Wiener Börse AG / Regulated free trade



Weitere Meldungen: SW Umwelttechnik Stoiser & Wolschner AG

Das könnte Sie auch interessieren: