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
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.
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.
end of announcement euro adhoc
issuer: Westag & Getalit AG Hellweg 15 D-33378 Rheda-Wiedenbrück phone: +49 (0)5242 17 0 FAX: +49 (0)5242 17 75000 mail: firstname.lastname@example.org 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