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2009 preliminary results
Revenue down to EUR66 million due to bleak trading environment
Successful adjustment to changed market conditions
EBITDA margin satisfactory in second half
SW Umwelttechnik a Vienna listed family firm with its core markets
in Central and Southeastern Europe today reported 40% year-on-year
fall in revenue to EUR66 million (m) for the 2009 financial year.
However preliminary EBITDA came in at EUR7.2m only 7% lower (2008:
EUR7.7m). The steady improvement in earnings over the year vindicates
the company´s strategy. SW Umwelttechnik expects its focus on local
government infrastructure projects and last year´s cost reduction
programmes to deliver earnings growth in 2010.
Results for 2009 For SW Umwelttechnik 2009 was overshadowed by the
recession, which hit the company´s key Hungarian and Romanian markets
harder than expected. GDP contracted by 6.5% in Hungary, by 7.0% in
Romania and by 3.8% in Austria. Industrial production tumbled by 15%
in Hungary and by 12% in Austria, and also slipped by 5% in Romania.
Many local government projects originally scheduled for early 2009
were put back until the end of the year. Management now expects
ongoing stimulus programmes, and assistance for Hungary and Romania
from the IMF and the ECB to be particularly beneficial to SW
The company responded to the economic situation in the first half of
2009 by launching radical restructuring programmes which returned
EBITDA margins to normal by the third quarter. This improvement was
driven by action to strengthen the focus of marketing efforts on
winning local government business, and to realign headcount to
reduced output and fixed costs to revenue.
The year-on-year revenue declines narrowed steadily in the course of
the year (Q1: 55%; Q2: 44%; Q3: 34%; Q4: 31%) for a preliminary
full-year total of EUR66m compared to EUR110m in 2008.
In Hungary, the country worst affected by the recession, revenue was
almost halved to EUR31m (2008: EUR61m), but this remained SW
Umwelttechnik´s largest market with a revenue contribution of 47%
(2008: 55%). Revenue in Romania slid by 35% to EUR13.6m (2008:
EUR20.9m), but the country revenue share edged up to 20% (2008: 19%).
Revenue generated in Austria was only 10% lower, and the revenue
contribution jumped to 28% (2008: 19%).
The company´s Infrastructure sector which was particularly severely
impacted by the collapse of demand for industrial and commercial
buildings sustained a 61% drop in revenue to EUR22.6m (2008:
EUR58.4m), resulting in a segmental revenue share of just 36% (2008:
53%). Revenue in the Water Conservation sector climbed to EUR33.7m
(2008: EUR35.1m), equal to 51% of the total (2008: 32%). The
Engineering sector posted revenue of EUR10.0m for a 15% revenue
contribution unchanged from 2008; delays in payments from Romanian
local authorities prevented it from raising its share of turnover.
Despite shrinking revenue SW Umwelttechnik held its market shares,
and the Water Conservation sector made major inroads in the Romanian
EBITDA slumped in the first half of 2009 due to collapsing revenue,
but EBITDA margins normalised in the third and fourth quarters as a
result of restructuring. Full-year EBITDA was only 7% down at EUR7.2m
The combination of constant depreciation and reduced output meant
that EBIT fell more sharply, declining to EUR1.2m (2008: EUR2.2m).
The company posted a loss on ordinary activities of EUR3.1m (2008:
EUR5.0m) after EUR1.5m in exchange losses, caused by the devaluation
of the Hungarian forint and the Romanian leu, and interest expense of
EUR3.1m. The loss for the period attributable to equity shareholders
was EUR3.3m (2008: EUR3.6m).
Fourth quarter performance Revenue was 31% down year on year at
EUR19.2m (Q4 2008: EUR28m). Operating EBITDA jumped to EUR2.4m (2008:
EUR0.7m) and the EBITDA margin was 12%. The previously announced
decision to apply IAS 40 (inclusion of surplus land in the balance
sheet) lifted fourth-quarter EBITDA by EUR2.9m to EUR5.3m, and
boosted EBIT to EUR3.7m (Q4 2008: EUR0.6m).
Order backlog Order backlog as at 31 December 2009 stood at EUR32.8m
12% down year on year (31 Dec. 2008: EUR37.4m) but 4% up quarter on
In Hungary environmental contract awards rose from EUR90m in 2008 to
EUR213m in 2009 (mostly bunched in the last quarter), and are
predicted to surge to EUR500m in 2010. In Romania the rapid formation
of a government in December 2009, opening the way for continued IMF
and ECB funding, is expected to result in a sharp increase in
municipal contract awards.
Employees Staff costs (including agency workers) were trimmed by over
25% to adjust to the 27% fall in output volume. The average number of
own staff decreased to 735 in 2009 (2008: 896).
Investment The EUR2.7m investment programme in 2009 was largely
devoted to updating and extending the product range. In line with the
revision of SW Umwelttechnik´s strategy to reflect changed economic
circumstances, investments in expansion have been put on hold, and
the emphasis is now on consolidating the company´s finances and
Outlook It remains very difficult to make reliable predictions about
the outlook for SW Umwelttechnik´s markets.
However, as stated in the company´s third quarter interim report,
demand has clearly stabilised since the summer of 2009. The
implementation of the stimulus packages in Austria, and the support
from the IMF and the ECB for Hungary and Romania should give the
markets served by SW Umwelttechnik a shot in the arm. Management sees
local government investment in Hungary and Romania picking up sharply
in mid-2010, while a sustained recovery in demand from industrial and
commercial clients should kick in by the end of 2010 in Romania and
2011 in Hungary.
SW Umwelttechnik´s long-term strategic goals of exploiting the
opportunities for sustainable growth in Central and Southeastern
Europe and claiming top- three positions in its core markets remain
in place, despite the challenging economic climate. Thanks to the
cost savings and investment in modern plant, the company is well
placed to gain from the expected economic upturn.
@@start.t2@@|EUR m |2009 |2008 |
|Revenue |66.2 |109.8 |
|EBIT | 1.3 | 2.2 |
|EBITDA | 7.2 | 7.7 |
|POA |-3.1 | -5.0 |
|Profit/loss for the |-3.3 | -3.6 |
|period attributable to | | |
|equity shareholders | | |@@end@@
Founded in 1910, SW Umwelttechnik 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.
@@start.t3@@end of announcement euro adhoc
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
Fax: +43 (0)463 37667
Tel: +43 (0)664 8117662
Fax: +43 (0)463 37667
Börsen: Berlin / free trade
Frankfurt / free trade
Wien / Regulated free trade