EANS-Adhoc: Westag & Getalit AG / Higher sales growth and moderate earnings growth in 2010; Dividend unchanged at EUR 0.94 per ordinary share and EUR 1.00 per preference share for 2010

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ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro
adhoc with the aim of a Europe-wide distribution. The issuer is solely
responsible for the content of this announcement.
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24.03.2011

Westag & Getalit AG benefited from a noticeable pick-up in domestic construction
activity. Following a weather-related weak start to the year, sales revenues
increased by 7.6% to EUR 216.6 million (2009: EUR 201.4 million) in 2010. We are
very pleased about the fact that all three divisions of the company reported an
increase in sales. Export sales also showed a positive trend and rose at a
disproportionate rate of 9.1% to EUR 42.8 million (2009: EUR 39.2 million) in
spite of a difficult economic situation in many foreign markets.

Westag & Getalit AG´s earnings before income tax amounted to EUR 15.1 million in
2010, compared to EUR 14.9 million in 2009, which represents a moderate increase
of 0.9%. While the absolute earnings figures are pleasing, earnings did not
entirely follow the positive sales trend due to the sharp rise in raw material
prices. In line with earnings before tax, net profit for the year increased by a
moderate 1.4% to EUR 10.7 million (2009: EUR 10.5 million). Earnings per share
amounted to EUR 1.86 in fiscal 2010 (2009: EUR 1.84).

The Management Board and the Supervisory Board will propose to the Annual
General Meeting, which will take place in Rheda-Wiedenbrück on July 26, 2011, to
pay out an unchanged dividend of EUR 0.94 per ordinary share and of EUR 1.00 per
preference share.

At this stage, we expect the recovery in the German construction sector to
continue. There are signs, especially in the housing construction sector, which
suggest that the long slack period is coming to an end. The overall situation in
other European countries is unlikely to improve markedly in the foreseeable
future. Construction activity in some Eastern European countries seems to be
stabilising at least. Against this background, we expect to see an increase in
domestic sales revenues. The question whether we will be able to generate
further growth abroad will depend on the actual trend in these markets, which
may well differ from country to country. In view of what are still low market
shares in the individual foreign markets, we are nevertheless optimistic that we
will be able to grow even if the market as a whole does not.

The crisis in Japan and the situation in the Arab region are factors of
uncertainty, though. At this stage, we cannot say whether these crises will
potentially have an adverse impact on the economies in our relevant markets.

Our business results in 2011 will depend not only on our sales performance but
also on the trend in raw material prices. Unfortunately, it does not appear as
if raw material prices, which have risen at an accelerated pace since Q2 2010,
have found a stable basis at a higher level. Right on the contrary, there has
been an unpleasant upward trend also in 2011. Having exploited the full
potential for rationalisation, it will therefore be one of our key tasks in 2011
to pass on these increased costs to our customers in the form of higher sales
prices. It remains to be seen if we will be able to achieve this in full and
whether there will be certain delays. Considering our traditional strengths in
terms of product portfolios, sales strength, technologies and
cost-consciousness, we are convinced, however, that we will again achieve good
business results in 2011.

Further inquiry note:
Felix Huisgen
Tel.: +49 (0)5242 17 5350
E-Mail: [email protected]
end of announcement euro adhoc
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issuer:      Westag & Getalit AG
             Hellweg  15
             D-33378 Rheda-Wiedenbrück
phone:       +49 (0)5242 17 0
FAX:         +49 (0)5242 17 75000
mail:        [email protected]
WWW:         http://www.westag-getalit.de
sector:      Building materials
ISIN:        DE0007775207, DE0007775231
indexes:     Prime All Share

stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Stuttgart, regulated dealing: Düsseldorf
language: English

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