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Significant Drop in Revenue for SW Umwelttechnik

Published: August 24, 2011; 09:46 · (Vindobona)

The Austrian technology company recorded mixed results in a challenging market environment. Revenue dropped 7%, EBIT improved but remained negative at € -1.7m.

Drop in Revenue for SW Umwelttechnik / Picture: © SW Umwelttechnik

SW Umwelttechnik reported results for the first half of 2011. The challenging situation in the company’s core markets Hungary and Romania is reflected in group revenue – it amounted to € 27.8m for the first half year 2011 and was thus € 2.2m below that of the previous year (2010: € 30.0m).

Due to the implemented adjustments of fixed costs to the current market situation and the increased gross margins, EBIT improved and amounted to € -1.7m (2010: € -2.1m). EBITDA was in the plus again and amounted to € 0.5m (2010: € 0.6m). The stable exchange rate trend of HUF and RON, the foreign currencies relevant to SW, lead to a financial result of € -0.5m, which is € 2.3m better than for the same time period in 2010 (€ -2.9m). This also resulted in a significantly improved result on ordinary activities of € -2.2m (2010: € -5.0m).

The order backlog as of June 30th 2011 amounted to € 34.9m and was therefore 6 % above that of the previous year (2010: € 33.0m). The company is planning on completing 87 % of this in the current year and 13 % in the following year.

SW Umwelttechnik expects increased growth in the Euro zone during the second half of the year. Due to the volatile capital markets and the insecurities in assessing economic development in Central Eastern Europe, visibility remains low. Despite difficult conditions in Hungary and Romania, management is overall expecting a significant improvement of the operative result compared to the previous year.

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