Wienerberger with dampened expectations

Published: June 30, 2010; 00:00 · (Vindobona)

Wienerberger AG expects a relatively good spring quarter, but is running after lost revenue of the first month.

Wienerberger with dampened expectations / Picture: © Wienerberger

"We do not have a tailwind from the markets as we have hoped for at the beginning," Heimo Scheuch CEO of the construction material company said on Tuesday. What Wienerberger does not get from the market, has to be "redeemed through cost adjustments." The brick company has to cut the price in several Eastern European countries and parts of North America.

A long winter and floods in Eastern Europe have impacted first quarter, according to Wienerberger’s CEO. For the full year forecast Scheuch is more optimistic, although “in times as these, even relatively small amounts are a significant improvement."

Slight recovery in the East

In Eastern Europe results of poor first quarter will recover slightly from April to June. Prices need to be reduced in the Czech Republic, Slovakia and Hungary, and to a lesser extent in Poland, Romania and Bulgaria. Wienerberger sees the rest of Europe somewhat improved with the exception of the Netherlands. Even in Germany a slight upward movement is expected. The USA only exhibits few positive signs. Even in local U.S. Markets Wienerberger will have to be "flexible on the prices".

A further reduction of capacity beyond the 31 closures of the past year is not planned according to Scheuch. Even some selective acquisitions could take place, such as roofing tiles in Eastern Europe. Problems with cash / corporate funding do not exist according to Wienerberger.

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