AUSTRIA: STRONG GROWTH FOR WIENERBERGER

Article Abstract:

According to director general Erhard Schaschl, Wienerberger is developing increasingly into a pure construction materials group. In 1999 the big Austrian construction materials group acquired or set up 66 factories, raising the total to 214 factories in 26 countries. Wienerberger is planning no big acquisitions in year 2000. The group expects a steep increase in profits. According to preliminary figures, operating profit for 1999 grew 14% to EUR 185.2mn. Turnover increased 16% to more than EUR 1.3bn. The sales of the core product groups bricks and pipes surged 31%, of which 19%-points is attributed to acquisitions. Profit growth amounted to 18% in nominal terms. Adjusted for acquisitions, profit growth rate was 20%. In the US Wienerberger has gained 17% of the market and become the second-biggest construction materials supplier after Boral (18%). In the medium term Wienerberger aims to generate 25% of turnover in the US, 25% in eastern Europe and 50% in western Europe. In eastern Europe Wienerberger's market share is 18%. In Poland the market share is to be raised from 20% to 30% in the short term. Sales in Austria contribute 10% to sales, but the share is falling. The group reports a double-digit decline in sales in the home country, and no improvement is in sight.

United States, Foreign operations, Poland, Eastern Europe

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AUSTRIA: NEW CHAIRMAN FOR WIENERBERGER

Article Abstract:

Wolfgang Reithofer will succeed Erhard Schaschl as chairman of Wienerberger. Schaschl, who has been the head of the Austrian construction materials group for 20 years, is stepping down as from 20 May 2001. Wolfgang Reithofer is currently vice-chairman and responsible for the brick division. At the same time, Wienerberger will get another three new board members. Hans Tschuden will be finance director and Johann Windisch director for construction materials operations in central, southern and eastern Europe. Heimo Scheuch will be responsible for the construction materials business in western and northern Europe with emphasis on hard burnt bricks. He will also coordinate group marketing. There is speculation about whether the change of management has to do with the wish of Creditanstalt to give up its stake in Wienerberger. Currently the bank controls the construction materials group together with Koramik of Belgium.

Asset sales & divestitures

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AUSTRIA/GERMANY: WIENERBERGER TO REDUCE CAPACITY

Article Abstract:

Wienerberger of Austria, the world's largest brick maker, is to close 4 or 5 brick production plants in eastern Germany and perhaps one of its 9 factories in Austria. Following the acquisition of Megalith Wienerberger is hoping to gain synergies and cut costs in administration and sales. Wienerberger chairman Wolfgang Reithofer expects group results to deteriorate markedly in 2001 but remain in the black. In the first half turnover declined 11% to EUR 746.4mn, partly due to the divestment of Treibacher. Turnover from bricks, roofing materials and pipes grew 1%. Adjusted for acquisitions in North America, construction materials sales, however, declined 3%. Earnings before interest and taxes amounted to EUR 32.1mn. Adjusted for divestments, ebit was down 61% from a year earlier.

Germany, Plant shutdown

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