Wienerberger AG recently released financial results for the third quarter of 2012. Revenues for the first nine months rose by 18% to €1,744 million (~ $2,227 million). The third quarter reportedly brought even stronger growth: from July to September 2012, revenues rose by 43% to €755 million (~ $964 million). This positive development was primarily attributed to the pipe business the company acquired.
Wienerberger is reportedly facing strong market headwinds in its traditional core brick business. Roughly 90% of revenues are generated in Europe, where new residential construction, the main driver for brick sales, is on a downturn in nearly all countries. In some markets, the number of single- and two-family homes completed this year will fall substantially below the crisis year of 2009.
These factors had a negative effect on Wienerberger’s brick business and led to lower volumes, reduced capacity utilization and a resulting decline in earnings for the first nine months of 2012. In the Bricks & Tiles Europe business area, revenues declined 6% to €1,117 million (~ $1,426 million).
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