euro adhoc: Westag & Getalit AG
Earnings
Positive sales and profit trend in
first half of 2007
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
31.07.2007
The general economic recovery in Germany has also entailed a positive development of construction activity. The index of incoming orders in the building construction sector published by the Federal Statistical Office for the period from January to May was up 2.8% on the previous year. Westag & Getalit AG benefited disproportionately from this trend. As of June 30, 2007, our sales revenues increased by 15.2% to EUR 109.9 million (previous year: EUR 95.4 million), confirming the positive upward trend seen in the first quarter of 2007. All three divisions reported double-digit growth. In particular, export sales climbed 25.0% to EUR 28.1 million (previous year: EUR 22.5 million). Accordingly, the export share rose from 23.6% in the previous year to 25.6%.
Earnings before income taxes rose by 35.1% to EUR 6.9 million (previous year: EUR 5.1 million), mainly as a result of the higher sales and despite a sharp increase in the cost of materials ratio to 52.1% (previous year: 49.0%). The latter is attributable to the continued rise in raw materials prices, which was only partly passed on to our customers. By contrast, personnel expenses developed favourably as a result of our higher output, growing only at a proportionately lower rate. Net profit climbed to EUR 4.3 million (2006: EUR 3.1 million), while DVFA/SG earnings per share rose to EUR 0.78 (2006: EUR 0.56).
The half-year figures make us optimistic for the full year 2007. If the positive economic development continues, we expect sales to increase by a good 10%. The present satisfactory earnings position is attributable to the very good capacity utilisation and the related drop in the staff cost ratio. While the rise in raw materials prices has slowed down, we still need to pass the resulting cost increases on to our customers. Against the background of the projected development of sales revenues, we are confident that the full-year result before income taxes will once again exceed the good result of the previous year.
end of announcement euro adhoc 31.07.2007 09:31:42
Further inquiry note:
Felix Huisgen
Tel.: +49 (0)5242 17 5350
E-Mail: huisgen@westag-getalit.de
Branche: Building materials
ISIN: DE0007775207
WKN: 777520
Index: Prime All Share
Börsen: Börse Frankfurt / official dealing/prime standard
Börse Berlin / free trade
Börse Stuttgart / free trade
Börse Düsseldorf / official dealing