Wienerberger Revenues Increase 8% in First Quarter of 2017
Wienerberger’s brick business in the U.S. reportedly benefited from more favorable weather conditions than in the previous year’s first quarter.
During the first quarter of 2017, Wienerberger AG reportedly increased its group-level revenues by 8% to €660 million (approximately $725 million). Between January and March, EBITDA rose by 15% to €46 million (~ $50.5 million). The developments seen in the individual business segments confirmed the company’s expectations at the beginning of the year.
“We generated a strong organic growth in the first quarter, despite a slow start into the year due to weather conditions,” said Heimo Scheuch, chairman of the managing board of Wienerberger AG. “This shows once again that we are strategically well-positioned for value-creation. We benefit from the positioning of our innovative products and system solutions in the market, as well as from intensified marketing and sales activities. The consistent focus on the optimization of our structures and processes, as well as the targeted expansion of our presence in individual fields of business, also contribute to the positive development of the company. Thus, the Wienerberger Group as a whole is flexible and well-equipped to operate successfully in an environment of economic and political volatility.
In the 2017 first quarter reports, residential construction showed a slight upward trend in both western and eastern Europe. While reported that construction activities were slowed down in January and February by unfavorable weather conditions, business picked up significantly in March.
Wienerberger’s brick business in the U.S. reportedly benefited from more favorable weather conditions than in the previous year’s first quarter. This may have resulted in livelier activities in the single- and two-family home segment. The positive development of demand also continued in Canada. The U.S. plastic pipe business recovered and improved results. Overall, the North America Division generated revenues of €74 million (~ $81 million), which corresponds to an 18% increase compared to the first quarter of the previous year. During the same period, earnings rose by 68% to €4 million (~ $4 million).
“Our target for this year is to achieve an organic 9% increase in EBITDA,” said Scheuch. “This is an ambitious goal, especially in view of the volatility of our markets and forthcoming events in the political arena, which will continue to influence economic developments in Europe. Wienerberger is well equipped to address the challenges of such an environment. Building on the satisfactory result of the first three months, we will continue to advance the forward-looking development of the Wienerberger Group and strengthen our position as the innovation and technology leader in our industry. Our focus here is on new products and services as well as on digital marketing channels and direct interaction with our customers.”
For more information, visit www.wienerberger.com.