SW Umwelttechnik Stoiser & Wolschner AG

euro adhoc: SW Umwelttechnik Stoiser & Wolschner AG
quarterly or semiannual financial statement
SW Umwelttechnik announces first-half interim results for 2006

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


. Revenue up by 5%, order backlog by 11% . Austrian operations to be concentrated at fewer sites . Profits impacted by weak forint . South Budapest works close to completion . Positive outlook for operating results

Vienna listed SW Umwelttechnik Stoiser & Wolschner AG posted a modest  gain  in second-quarter revenue from E26.6 million (m) to E27.0m,  more  than  making  up ground lost through unusually poor trading in April due to bad  weather.  Record revenue of E10.0m in June points to an improvement in the second half.

Over the first half of 2006 the group recorded a  4.5%  year-on-year cumulative increase in  revenue  to  E36.2m  (H1  2005:  E34.6m). Revenue  from  Hungarian operations rose by 8.3% to E24.5m (H1 2005: E22.7m), representing 68%  of  total sales (H1 2005: 65%). Revenue generated in Austria slipped from 27%  to  24%  of the total. Other EU member states accounted for 3% of  revenue  (H1  2005:  6%), and Romania for 5% (up from 2%).

The group's Infrastructure sector put in an outstanding performance in  Austria and Hungary, whereas the Engineering sector suffered a fall  in  revenue  which should be cancelled out in  the  second half.  The  Infrastructure  sector  was responsible for 51% (H1 2005: 48%), and the Engineering sector for only  17%  of revenue (H1 2005: 23%)  while  the  Water  Conservation  sector's  contribution increased from 29% to 32%.

Earnings before interest and tax (EBIT) remained  negative,  in  line with  the normal seasonal pattern. The effects of late  starts  to construction  projects due to bad weather are still being felt. EBIT for the first  half  was  negative by E1.2m compared to a positive figure of E0.8m in  the  like  period  of  2005. With EBIT positive to the tune of E1m in both May  and  June,  SW  Umwelttechnik looks set for a strong third quarter.

The weak performance in April is also the main reason for  the  drop in  EBITDA from E1.3m to E0.8m.

Finance cost was driven by the weakness of the  Hungarian  forint, climbing  to E3.1m from E0.5m in the like period of the previous year.  In  consequence  the loss on ordinary activities widened to E4.3m  (H1  2005.  1.3m).  It  should  be noted that the interim result is based on an exchange rate of HUF  283/E  on  30 June 2006, compared with 253 on 31 December 2005. Following  the  expected  0.5% increase in the Hungarian base rate the exchange rate recovered to HUF 272/E  by 31 July 2006.

Operations in Austria are being concentrated  at  three  of  the five  existing sites in response to  disappointing  capacity utilisation,  especially  in  the sewerage segment. The outlook for the biogas plant  business  has  now  improved due to the determination of new power injection tariffs.

Following  a  long  winter  and  the  closure  of  a  small  factory, capacity utilisation in the Infrastructure sector was excellent in Hungary in the  second quarter. Capital expenditure is again largely being channelled to  this  sector, which is launching new agricultural,  industrial  building  and  road  drainage products. In the Water  Conservation  sector,  flooding  continued  to  obstruct deliveries, but strong order backlog, and improving quality and productivity  at the new reinforced concrete plant offered reasons for optimism. The  Engineering sector was the only business to trade below expectations.

In geographical terms, investment is  now  strongly  focused  on Romania  where three factories are planned.  Production  at  the Timisoara  works  is  due  to commence in September, while  the  land for  the  Bucharest  factory  has  been rezoned and work has begun on the construction of a large central cement  mixing plant at the site.

The group's head count rose to 811 (H1 2005: 749). Most of  the growth  in  the workforce was due to the initiation of recruitment in Romania,  which  added  50 employees.

Order backlog as at 30 June was up by 11% year on year, from E36m to E40m.

Capital expenditure ran at E5.7m in the first half, E2.5m going to the  two  new Romanian  factories  and  E1.7m  to  expansion  of  the South  Budapest  works. Construction of this greenfield factory - the group's largest - began  in  2001, and it has since between steadily expanded. A further E1.5m will be  spent  this year, largely concluding a E15m investment programme.  On  completion  Hungary's most modern concrete factory will have 21,500 square  metres  (sqm) of  factory buildings,  140,000sqm  of  paved  surfaces,  three large  mixing  plants  with capacities of 1,000 cubic metres per day, 20 indoor cranes (capable  of  lifting up to 31 tonnes), and 200 employees.

Outlook for 2006 as a whole

Due to the good operating results in May and June management is standing by  the optimistic guidance for the year as a  whole  given after  the  first  quarter.

@@start.t2@@Management    anticipates    further    single-figure    revenue    growth    and      a
disproportionate improvement in EBIT. However the volatile forint exchange  rate
makes it difficult to predict finance cost.
      . In Austria, operations at the  five  existing  production  facilities  are
         being concentrated at three sites. These relocation programmes, which  are
         expected to result in one-time costs  of  E600,000,  should  bring  marked
         improvements in Austrian operating profits from 2007 on.
      . in Hungary,  the  ambitious  investment  programme  has  now  almost  been
         completed.  Excellent  capacity  utilisation  is  anticipated  across  all
         business sectors in the second half. The July increase in  the  base  rate
         has stabilised  the  forint  exchange  rate,  and  the  currency  is  seen
         strengthening further after the local elections in October due to  planned
         budget stabilisation measures.
      . In Romania, completion of the Water Conservation sector works in Timisoara
         in  August  will  be  followed  by  production  start-up    in    September.
         Construction of the Infrastructure sector factory in  the  Bucharest  area
         will begin on schedule in the autumn, and the first stage of  the  project
         should be ready for start-up in the second half of 2007. A  site  for  the
         third Romanian works, in Targu  Mures,  central  Transylvania,  is  to  be
         acquired this year.
Financial highlights@@end@@

2nd quarter

|in Em                 |2006        |2005      |
|Revenue              |27.0        |26.6      |
|EBIT                  |2.1         |2.6        |
|EBITDA                |3.1         |3.7        |
|POA                    |0.6         |2.4        |
1st  half
|in Em                 |2006        |2005      |
|Revenue              |36.2        |34.6      |
|EBIT                  |-1.2        |-0.8      |
|EBITDA                |0.8         |1.3        |
|POA                    |-4.3        |-1.3      |

@@start.t3@@end of announcement                                                 euro adhoc 09.08.2006 07:55:00

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

Further inquiry note:
Dr. Bernd Wolschner, member of the Management Board
Tel: +43 (0)463 32109; fax: +43 (0)463/37667
Michaela Wolschner, Investor Relations
Tel: +43 (0)664 8117662; fax: +43 (0)1 3688686;
e-mail: michaela.wolschner@sw-umwelttechnik.com
Web: www.sw-umwelttechnik.com

Branche: Technology
ISIN:      AT0000808209
WKN:        910497
Index:    WBI
Börsen:  Börse Berlin-Bremen / Regulated free trade
              Frankfurter Wertpapierbörse / Regulated free trade
              Wiener Börse AG / Regulated free trade

Weitere Meldungen: SW Umwelttechnik Stoiser & Wolschner AG

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