Westag & Getalit AG

EANS-Adhoc: Westag & Getalit AG
Dividends remain unchanged at EUR 0.94 per ordinary share and EUR 1.00 per preference share in spite of the commodity price-induced decline in earnings

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  ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro
  adhoc with the aim of a Europe-wide distribution. The issuer is solely
  responsible for the content of this announcement.
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22.03.2012

Against the background of a positive overall trend in the German construction
sector and good export sales, Westag & Getalit AG was able to increase its sales
revenues by a pleasant 4.8% to EUR 227.1 million (2010: EUR 216.6 million).
Export sales rose at a disproportionate rate of 13.8% to EUR 48.7 million (2010:
EUR 42.8 million). As a result, the export share climbed from 19.8% in the
previous year to 21.5%. 

Earnings before income taxes amounted to EUR 11.8 million in 2011, which
represents a notable decline from the previous year´s EUR 15.1 million. The
unsatisfactory earnings performance is mainly attributable to dramatic increases
in the prices of chipboard and oil-based raw materials. The prices of other
commodities such as wood and paper picked up markedly as well. The sharp rise in
transportation charges and energy costs also had an adverse impact. Net profit
declined in line with earnings before taxes and reached EUR 8.2 million (2010:
EUR 10.7 million). In accordance with amended IFRS regulations, earnings per
share are stated separately for ordinary and preference shares for the first
time in 2011. EPS amounted to EUR 1.48 per ordinary share (2010: EUR 1.92) and
to EUR 1.54 per preference share (2010: EUR 1.98). 

In spite of the decline in earnings, the Management Board and the Supervisory
Board will propose an unchanged dividend of EUR 0.94 per ordinary share and of
EUR 1.00 per preference share to the Annual General Meeting, which will be held
in Rheda-Wiedenbrück on August 28, 2012. 

We are generally optimistic about economic activity in Germany, and especially
in the German construction sector. The domestic economy has given impressive
proof of its resilience in 2010 and 2011. The construction sector additionally
benefits from a clear trend towards selective investments in housing properties.
While this means that the economic preconditions are positive, we are well aware
of the fact that the risk situation may change at any time if the financial
crisis intensifies. Based on these positive economic assumptions, we expect
domestic sales revenues to increase. Especially the construction-related
distribution units should benefit from growing housing construction. We also
project an increase in export sales. Most recently, we demonstrated that we can
operate successfully even under very difficult export market conditions - and
there are sufficient opportunities and projects which suggest that we will be
able to do so in future. Our bottom line is influenced not only by sales
revenues but also by the trend in commodity prices, which are currently sending
more positive signals, following the very unpleasant trend in 2010 and 2011.
Indicators point to a stabilisation in the prices of the most important
commodities. The trend in oil prices seen in the past weeks is giving cause for
concern, however. As we have been able to pass on only part of the huge material
price increases to our customers, we will be forced to hold further price talks
with our customers. Should these positive effects materialise, we will be able
to restore our profitability to past levels.


Further inquiry note:
Felix Huisgen
Tel.: +49 (0)5242 17 5350
E-Mail: huisgen@westag-getalit.de

end of announcement                               euro adhoc 
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issuer:      Westag & Getalit AG
             Hellweg  15
             D-33378 Rheda-Wiedenbrück
phone:       +49 (0)5242 17 0
FAX:         +49 (0)5242 17 75000
mail:     ir@westag-getalit.de
WWW:      http://www.westag-getalit.de
sector:      Building materials
ISIN:        DE0007775207, DE0007775231
indexes:     Prime All Share
stockmarkets: free trade: Berlin, Stuttgart, regulated dealing: Düsseldorf,
             regulated dealing/prime standard: Frankfurt 
language:   English
 



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