SW Umwelttechnik Stoiser & Wolschner AG

euro adhoc: SW Umwelttechnik Stoiser & Wolschner AG
Financial Figures/Balance Sheet
SW Umwelttechnik: results press conference

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annual report


* EBIT up by 12% * Record E26.4 million investment programme * Expansion in Romania and market build-up in Bulgaria and Serbia slated

Vienna, 23 April: After successfully fighting  a  harsh  trading   environment  - especially in Hungary and Romania - today at the results press conference  joint chief executives Dr. Bernd Wolschner and DI Klaus Einfalt unveil SW Umwelttechnik's  results  for 2007. Despite the difficult conditions they can - due to the  realisation   of  a record investment programme - unveil a creditable result. And   the  outlook  for 2008 is good.

Revenue Revenue decreased by 6% to EUR 91.2m  in  2007  (2006:  EUR   101.9m).  The  main reasons for this were government spending cuts in Hungary which led to  a  sharp decline in municipal contract awards, as well as hold-ups  in  major  EU  funded projects in  Romania.   Part  of  the  lost  ground  was  made  up  by  increased deliveries to commercial and industrial  customers,  and  exports  to  countries bordering core markets.

Our main geographical market, Hungary accounted for EUR 57.2m or  60% of  total revenue in 2007, compared to E67.5m or 66% in the previous year.  As  expected, the revenue contribution of the Austrian market shrank  to  EUR  19.3m  or  20% (2006: EUR 23.0m, 23%), due to the works closures in  2006.  The  revenue  share generated in Romania was below forecast due  to  delays  in  EU  projects,  only edging up to EUR 8.6m or 9% (2006: EUR 7.8m). By contrast exports  from   Hungary to Slovakia jumped from EUR 1.0m to EUR  6.6m  (7%),  while   the  proportion  of revenue derived from "other" countries (Croatia, Germany,  Italy  and  Slovenia) almost doubled to EUR 4.0m or 4% (2006: EUR 2.3m).

A particularly satisfactory performance from the Infrastructure sector  in  2007 boosted its revenue contribution to 51%  from  43%   in  2006.  The  main  factor behind this success was strong order bookings  from  industrial  and  commercial clients. The proportion of revenue  accounted  for  by  the  Water  Conservation sector edged down to 30% (2006: 32%), while the Engineering sector  was  hardest hit by the public spending cuts in Hungary and its segmental   contribution  slid to 19% (2006: 25%).

Earnings Earnings before interest and tax (EBIT) improved  again,  by 12%  to  EUR  4.6m (2006: EUR 4.1m) despite the adverse trading environment. Some EUR  2m  in  non- capitalised start-up losses in Romania are recognised in this figure. EBITDA was up by 2% to a record EUR 9.4m (2006: EUR 9.2m). The sharp devaluation of the Romanian lei towards the end of 2007 resulted in  a pronounced deterioration in net finance  costs,  as  the  remeasurement  of  the investment loans at balance sheet date led to an unrealised exchange loss.  Due to this effect net finance  costs  increased  to  EUR   3.3m  (2006:  EUR  1.2m), cutting profit on ordinary activities (POA) to EUR 1.2m (2006:  EUR  2.9m).  Due to positive earnings expectations deferred tax assets were recognised, and as  a result the profit for the period held at EUR 1.7m (2006: EUR 2.1m).

Assets and finances Total assets rose by 26% to EUR 120.2m (2006: EUR 95.5m). The  reasons  for  the increase lay in the heavy investment programme, as well as the  reclassification of the property in Csepel, which is surplus to operational requirements  and  is being held for sale.

Non-current assets were up by 30.8% from EUR 57.9m to EUR 75.7m, reflecting  the expanded investment programme amounting to EUR 26.4m. The effect on  non-current assets of currency differences  arising   from  movements  in  the  HUF  and  RON exchange rates totalled EUR 0.5m (2006: EUR 0.7m).

Equity increased from EUR 26.5m to EUR 27.2m due  to  strong   earnings.  However the equity ratio slipped from 27.7% to 22.6%.

The extensive investment programme was financed by  cash  flows  from operating activities and increased long-term borrowings.

Employees The average head count decreased by 5% to 797 in 2007 (2006:  836)  bringing  it into line with reduced output. In  2007   the  Austrian  workforce  averaged  153 (2006: 193), the Hungarian payroll 542 (2006: 583), and the number of  employees in Romania 102 (2006: 60). The start-up of the  new  factory  in  Bucharest  has expanded the Romanian labour force to about 200.

Capital expenditure 46% of the record capital expenditure of EUR 26.4 m in 2007  was  channelled  to the construction of new production facilities in Romania, while 46% was  devoted to plant expansion and modernisation projects in Hungary -  most  of  the  money going to the final expansion phase at the  South  Budapest  site  -  and  8%   to restructuring programmes at the Austrian sites. Investment spending  was  mainly focused on the Infrastructure sector.

Order backlog Order backlog of EUR  46.0m  at  balance  sheet  date   was  the  highest  in  SW Umwelttechnik's history, and represented a year-on-year gain of 77%  (2006:  EUR 25.9m). Order backlog climbed to EUR 30m in Hungary (2006: EUR 17m) and  to  EUR 12m in Romania (2006: EUR 6m). The  upturn  in  order  intake  was  particularly gratifying in the light of  the  difficult  market  conditions  in   Hungary  and Romania.

Dividend recommendation Due to the group's positive operating performance the Management Board  will  be recommending a divided of E0.30 per share for the  2007  financial  year  (2006: E0.30/share).

Outlook The markets in Central and  Southeastern  Europe  continue   to  offer  excellent prospects. Above-average growth rates are likely to persist for  some  years  to come - especially in Romania. Our   record  investment  programme  has  laid  the groundwork for the long-term consolidation of our position in these markets. During the year under  review  we  pressed  ahead  with  rigorous  restructuring programmes in Austria, and  turnaround  was  achieved.  The  increase in  order backlog gives us a strong platform for a further improvement in the  results  of the Austrian operations in 2008.

Despite the collapse in  construction  activity  in  Hungary  in   2007  we  kept results in this market close to the previous year's levels thanks to  hard  work and good project management. We do not expect business to  pick  up  in  Hungary until the third quarter of 2008. Implementation of the major EU projects in  the pipeline should begin in the autumn. Due to the excellent order books  situation and the expectation of additional major contract  wins,  management   expects  at least modest year-on-year revenue growth, contrary  to   the  forecasts  for  the industry as a whole.

In Romania, the commissioning of  the  Bucharest  works  in  November 2007  has opened the way for the coming expansion phases. Implementation of  Phase  II  in 2008 will bring capacity for the Water Conservation sector. Due to a  number  of delays in the EU support  programmes  many  projects  that  were  to  have  been implemented in 2007 have been put back to 2008  or  beyond.  The  new Bucharest works should make  a  positive  contribution  to  Group   earnings.  Due  to  the expected delays in EU funded projects management has shifted the focus  in  this market to industrial and commercial projects in 2008.

Development of the neighbouring  Bulgarian,  Moldavian,  Serbian  and Ukrainian markets will proceed, using products exported from Hungary and Romania. We  plan to build additional factories in these countries, and the first negotiations  on land purchases have been initiated. Our policy of using land that is surplus  to

@@start.t2@@operational requirements after new plants have been built  and  commissioned  as an additional source of income remains in place.

Financial highlights
|In Em                      |2007            |2006                |2005            |
|Revenue                  |96.1            |101.9              |91.2            |
|EBIT                        |4.6              |4.1                 |3.9              |
|EBITDA                    |9.4              |9.2                 |8.6              |
|POA                         |1.2              |2.9                 |1.9              |@@end@@

Founded in 1910, SW Umweltechnik 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.

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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.: +43/7259/31 35 0
Fax: +43/463/37 667

Romed Lackner
Investor Relations/Marketing
Tel.: +43/664/811 76 70
Fax: +43/463/37 667 170
E-Mail: romed.lackner@sw-umwelttechnik.com

Website: 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

Weitere Meldungen: SW Umwelttechnik Stoiser & Wolschner AG

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