SW Umwelttechnik Stoiser & Wolschner AG

euro adhoc: SW Umwelttechnik Stoiser & Wolschner AG
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SW Umwelttechnik affected by CEE exchange rates

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14.01.2009

* Book losses due to RON and HUF course changes * Restructuring actions in Hungary initiated in   fourth quarter already implemented * Outlook for Water Conservation sector still positive in 2009

SW Umwelttechnik - a listed family business with its  core  markets   in  Central and Southeastern Europe - is exposed to increased short-term  currency  risk  by its expansion investments. The recent course changes  in  the  Hungarian  forint (HUF) and Romanian lei (RON) are likely to cause temporary book losses of  about EUR 5 million (m) in the 2008 financial year.

The Hungarian and Romanian currencies were highly volatile in 2008   due  to  the economic crisis, and both lost almost 10% of the value against the euro  in  the fourth quarter. SW  Umwelttechnik  will   probably  recognise  EUR3m  in resultant losses on the revaluation of assets  in  its  income  statement,  and  report  a further EUR2m on its balance sheet. The group  expects  the  volatility  of these currencies to abate during the second half of 2009, and the  exchange rates  to return to their normal ranges, meaning that these non-cash write  downs  can  be reversed.

Restructuring exercises  in  Hungary,  aimed  at  adjusting   operations  to  the changed market environment, have already been successfully implemented,  leading to the lay-off of 165 internal blue collar and 45 salaried  staff,  in  addition to the 210 redundancies among leased employees announced in the  third  quarter. As a result of these actions and of the strong market position   enjoyed  by  its Water Conservation sector, SW Umwelttechnik anticipates a marked improvement  in earnings in 2009 despite the continued adverse economic situation in Hungary. Management is confident the strong pipeline of EU-cofinanced municipal  projects will continue to drive high capacity utilisation at the two  new   factories,  in Timisoara  and  Bucharest.  All  the  technical   preparations  for  the  planned investment in expansion of the Bucharest works have been completed, and work  on the project is  due to  start  towards  the  end  of  2009,  market  conditions permitting.

The Austrian operations are expected to deliver  similar  results  to those  in 2008, as the government's planned  economic  stimulus   programmes  will  give  a particularly strong boost to the market segments served by SW Umwelttechnik. In 2009 and 2010 the group will be concentrating on consolidating its  positions in its core markets - Austria, Hungary and Romania - and on its existing  export business with Bulgaria, Italy, Slovakia and Slovenia.

SW Umwelttechnik will publish a detailed  review  of  business   developments  in 2008 and an updated outlook for 2009 when it announces its  preliminary  results on 27 February 2009.

Founded in 1910, SW Umwelttechnik remains a family business, though it has  been listed on the Vienna Stock Exchange since 1997.  The   group  is  known  for  its commitment  to  sustainable  enterprise   and  rapid  expansion  in  Central  and Southeastern Europe (CSE). Its innovative environmental technology products  are contributing to infrastructure renewal in CSE.

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ots Originaltext: SW Umwelttechnik Stoiser & Wolschner AG
Im Internet recherchierbar: http://www.presseportal.ch

Further inquiry note:
Dr. Bernd Wolschner
CEO SW Umwelttechnik AG
T: +43/(0)7259/31 35 0

Michaela Werbitsch
Investor Relations
T: +43/(0)664/811 76 62
F: +43/(0)463/37 667
E: michalea.werbitsch@sw-umwelttechnik.com
W: 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



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