Growth Continues for Wienerberger in Third Quarter of 2018
Compared to the third quarter of 2017, Wienerberger’s revenues increased by 7% to €888.1 million (approximately $1 billion).
Wienerberger recently reported its results for the third quarter and first nine months of 2018. Compared to the third quarter of 2017, revenues increased by 7% to €888.1 million (approximately $1 billion), while adjusted EBITDA grew by 13% to €42.2 million (~ $47.6 million).
“In the third quarter of 2018, we were again able to build seamlessly on the excellent performance of our group in the previous quarters,” said Heimo Scheuch, CEO. “Thanks to the consistent implementation of our corporate strategy, we generated highly satisfactory revenue growth and reached a 10-year high in earnings. The main factors underlying the steep rise in the group’s operating result include improvements in our cost structure, expeditious measures taken to streamline our portfolio, and the successful implementation of strategic growth projects. Overall, our business benefited from a high level of demand in our core markets.”
During the first nine months of 2018, revenues at a group level increased by 6% to almost €2.5 billion (~ $2.8 billion). Adjusted EBITDA (excluding one-off expenses and income) grew by 16% to €356.4 million (~ $401.7 million), while net profit jumped by 33% to €125.7 million (~ $141.7 million).
In the Clay Building Materials Europe Division, the European brick business reportedly continued to perform very well in the third quarter of 2018, especially in the growth markets of Eastern Europe. Demand in Western Europe was stable. Following the successful implementation of measures to improve the cost structure, profitability increased substantially. For the first nine months of the year, the division reported a 7% rise in revenues to top €1.4 billion (~ $1.6 billion).
Stable to slightly upward trends were reportedly observed in the Pipes & Pavers Europe Division’s markets in Western and Eastern Europe. According to the company, comprehensive restructuring measures implemented in France are taking effect and have led to a further improvement in earnings in the third quarter. Positive contributions were also made by the most recent acquisitions of innovative producers of prewired electro conduits and pre-insulated pipes. The division’s revenues grew by 6% to €819.4 million (~ $923.5 million).
The repositioning of the North America Division in recent years has proved a success, according to Wienerberger. The division saw significant growth recorded in the North American pipe business and significant contributions to earning made by the Mississippi-based facing brick producer acquired by Wienerberger last year. Due to foreign exchange fluctuations, the division’s revenues in the first nine months increased by 0.4% to €235 million (~ $264.8 million).
“We are consistently and swiftly implementing our corporate strategy, which is based on three main pillars: operational excellence, organic growth, and growth projects and portfolio optimization,” said Scheuch. “In terms of operational excellence, we intend to reach our targets faster than originally foreseen, and the results achieved so far are most encouraging. At the same time, we are determined to seize opportunities for growth through acquisitions in strategically interesting fields of business and markets even faster than in the past. In addition, we are fully on track to reach our targets for 2018.”
Additional details are available at www.wienerberger.com.