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SW Umwelttechnik Stoiser & Wolschner AG

euro adhoc: SW Umwelttechnik Stoiser & Wolschner AG
Financial Figures/Balance Sheet
SW Umwelttechnik announces preliminary results for 2008

  Disclosure announcement transmitted by euro adhoc. The issuer is responsible
  for the content of this announcement.
preliminary results
27.02.2009
* Revenue up by 14% to EUR109.8 million
* Restructuring program in fourth quarter
* Positive outlook due to strong order backlog (EUR37 million)
SW Umwelttechnik - a Vienna listed family firm with its core markets 
in  Central and Southeastern Europe (CSE) - posted a  14%  increase  
in  revenue  to EUR109.8 million (m) in 2008 despite difficult 
trading conditions.  EBITDA  was EUR7.7m - 18%  down  on  the  
previous  year's  record  figure  -  due  to  the cost   of 
restructuring programmes in Hungary which have  now  been  pushed 
through.  The company recorded  a  loss  of  EUR3.8m  for  the  
period attributable  to  equity shareholders, mainly caused by 
movements in CSE currency  exchange  rates.  The strong order backlog
confirms the strategy of the company  in  concentrating  on the 
public sector investments and ensures the success 2009.
Results for 2008 Following a bright first half, the CSE region - SW 
Umwelttechnik's  main  market - was battered by the global economic 
and financial crisis in  the  second  half of 2008. Investments in 
industrial and commercial buildings came  to  a  virtual standstill 
in Hungary, and SW Umwelttechnik was hit by  order  cancellations  to
the tune of EUR11m.  Nevertheless,  thanks  to  its  strong  market  
position the company registered 14% organic revenue growth to  
EUR109.8m  for  the  year as  a whole.
The revenue contribution of the Hungarian market slipped to 55% 
(2007:  60%)  at EUR61m, while that of the Romanian market doubled to
an on-target 19%  (2007: 9%)or EUR21m, and that of Austria was EUR21m
-  an  almost  constant  19%  of revenue(2007: 20%).
The revenue contribution from SW Umwelttechnik's Infrastructure 
sector  rose  to EUR62m or 53% (2007: 51%) and the Water Conservation
sector's share of revenue to EUR32m or  32%  (2007:  30%)  driven  by
growth  in  Romania.;  by  contrast  the Engineering sector's 
contribution slid to EUR16m or 15% (2007:  19%)  due to  the 
Hungarian government's restrictive fiscal policies in 2007/2008.
Management responded to the change in the  trading  environment  in  
the  fourth quarter by laying off 200 contract workers and 200 
permanent staff, and  is  now focusing on the increase in municipal 
spending that is expected to  result  from the announced stimulus 
packages.
Earnings before interest and tax (EBIT) mirrored the  harsh  market  
conditions, and weak trading in Hungary had a particularly negative  
impact.  EBIT  declined to EUR2.1m in 2008 (2007: EUR4.6m). This 
result already reflects  the  action taken in Hungary to adjust to 
the economic situation. EBITDA came in at  EUR7.7m - 18% below the 
previous year's record EUR9.4m.
SW Umwelttechnik's recent expansion in Southeastern  Europe  has  
increased  its exposure to currency risk. The sharp movements in  the
exchange  rates  of  the Hungarian HUF and  the  Romanian  RON  
towards  the  end  of  the  year  led  to accounting (noncash) losses
of EUR5m in 2008, and net  finance  result  jumped to EUR7.2m from 
EUR3.3m in 2007. SW  Umwelttechnik  expects  the  volatility  of  
these currencies to abate in the medium term, and the  exchange  
rates  to return  to their normal ranges, meaning that the items that
have been written down  can  be revalued accordingly.
Higher finance costs meant that the  company  swung  into  a  loss  
on  ordinary activities of EUR5.0m (2007: + EUR1.2m) and  a  EUR3.8m 
loss  for  the period's  net profit (2007: + EUR1.7m).
Fourth quarter performance The impact of flagging CSE economies was 
mainly  felt  in  the  fourth  quarter. Revenue, EBIT and EBITDA were
all far below expectations at EUR28.1m, - EUR0.9m and EUR0.5m, 
respectively.
Due to management's rapid response to market developments most of  
the  spending on restructuring was completed in 2008t, leaving SW  
Umwelttechnik  well  placed for 2009.
Order backlog Order backlog at year end was a satisfactory EUR37.4m. 
While this failed to match the record EUR46m reported at the end of 
2007 it was still  well  above the  2006 figure of EUR25.9m. Order 
intake in Hungary and Romania is encouraging in view  of the adverse 
trading environment.  The  Engineering  sector  has  won  two  large 
contracts for drinking water and sewer networks in Romania, and in 
Hungary  the first order for bridge beams was achieved. This shows 
the effectiveness  of  the company's  strategy  of   focusing   on   
public   sector   infrastructure   and environmental protection 
projects.
Employees The average head count rose to 895 in 2008  (2007:  797)  
due  to  expansion  in Romania. The Romanian workforce grew to 221 
(2007: 99) as a result of the start- up of the Bucharest factory. The
reduction of 200 in the permanent labour  force in Hungary, initiated
during the fourth quarter, is  included  in  expenses  for 2008, but 
the positive impact on costs will not be seen until 2009.
Investment Following the record EUR26m investment programme in 2007, 
in 2008 a further EUR9.4m went to completing the new plants; EUR5.1m 
was  spent  in  Hungary  and EUR3.2m  in Romania.
Dividend recommendation The Management Board will recommend to the 
General Assembly to  suspend  payment of a dividend for 2008 
financial year because of the overall economic  situation and the 
loss for the year.
Outlook SW Umwelttechnik's investments in expansion in Hungary and 
Romania have  created strong positions in these markets, and its  
modern  production  facilities  have given it cost leadership there.
The expectation is for a further sharp decline in all forms  of  
industrial  and commercial investment across the entire CSE region,  
offset  by  growing  public sector investment as a result  of  the  
announced  stimulus  packages.  In  this market segment SW 
Umwelttechnik has a good  name  as  responsible  supplier,  as shown 
by recent order intakes.
Management anticipates the following trends in the company's main 
markets:
. In Romania, economic growth will slow, but is expected to remain  positive
      by 1% or  more.  Municipal  investment  in  environmental  protection  and
      infrastructure co-financed by the EU should continue to expand clearly  in
      2009.
    . Hungarian GDP is forecast to contract by 3%, leading to a  sharp  fall  in
      industrial and commercial investment. The Water Conservation  sector,  and
      probably also the Engineering sector  appear  to  be  set  for  recovering
      growth - partly as a result of a mooted stimulus package.
    . In Austria, the main business, Water Conservation should continue to  grow
      as a result of the new products and the promised stimulus package.
In the light of these  developments  SW  Umwelttechnik  expects  only
a  slight decline in revenue, and is looking forward to a profitable 
year as a  result  of the restructuring actions that have already 
been implemented.
Founded in 1910, SW Umwelttechnik remains a family business, though 
it has  been listed on the Vienna Stock Exchange since 1997. The 
group 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.
Financial highlights
|EUR m                   |2008                    |2007                    |
|Revenue                 |109.8                   |96.1                    |
|EBIT                    |2.1                     |4.6                     |
|EBITDA                  |7.7                     |9.4                     |
|POA                     |-5.0                    |1.2                     |
|Profit/loss for the     |-3.8                    |1.7                     |
|period attributable to  |                        |                        |
|equity shareholders     |                        |                        |
end of announcement                               euro adhoc

Further inquiry note:

Dr. Bernd Wolschner
Member of the Management Board
Tel: +43 (0)7259 31350
Fax: +43 (0)463 37667

Michaela Werbitsch
Investor Relations
Tel: +43 (0)664 8117662
Fax: +43 (0)463 37667
E-mail: michaela.werbitsch@sw-umwelttechnik.com
Web: 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

Plus de actualités: SW Umwelttechnik Stoiser & Wolschner AG
Plus de actualités: SW Umwelttechnik Stoiser & Wolschner AG