euro adhoc: Westag & Getalit AG / Quarterly or Semiannual Financial Statements / Earnings continue to grow on slightly higher sales as of September 30, 2004 (E)

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Business results

Activity in the German construction sector continues to decline. The
latest figures published by the Federal Statistical Office for the
building construction market show that incoming orders declined by
5.2% (accumulated until August). Against this background, it is all
the more gratifying that Westag & Getalit AG expanded its nine-month
sales by 2.5% from EUR 122.4 million in the previous year to EUR
125.5 million. Due to increased international activities, export
sales rose by an impressive 8.7% to EUR 20.9 million. The export
share climbed from 15.7% in 2003 to 16.7%.

The result before income taxes increased strongly to EUR 5,212
thousand (2003: EUR 1,531 thousand) for the nine-month period. All
three divisions contributed to this growth, which was not least
achieved thanks to continued strict cost management. DVFA/SG earnings
per share amounted to EUR 0.52 in the nine-month period (2003: EUR
0.13).

Outlook

The general economic environment in Germany remains characterised by
uncertainty. A certain downward trend is currently expected for the
construction sector. Both the residential and the commercial
construction sectors are lacking stimulus that could lead to a
recovery. Accordingly, we have only modest expectations regarding
domestic sales. By contrast, we see opportunities in the export
market which we will increasingly take advantage of. The
rationalisation and cost-cutting measures that have been implemented
have clearly reduced the ratio of personnel expenses to total sales.
The strong competitive pressure forces us to stay on this course.
However, the rising prices of some raw materials are gradually making
themselves felt in the form of a higher cost of materials. While this
requires us to raise the prices of our products, we can do so only
with some delay. The increased competitive pressure means new
challenges for our company. Our long-term competitiveness hinges on
our product range, our quality, our reliability as a supplier and,
last but not least, our cost structure. In view of the measures we
have initiated and the strong commitment of our employees, we feel
that our growth and profit outlook is positive.

Further inquiry note:
Felix Huisgen
Tel.: +49 (0)5242 17 5350
E-Mail: huisgen@westag-getalit.de

end of announcement euro adhoc 11.11.2004 13:11:25
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emitter: Westag & Getalit AG
Hellweg 15
D-33378 Rheda-Wiedenbrück
phone: +49 (0)5242 17 0
FAX: +49 (0)5242 17 75000
mail: ir@westag-getalit.de
WWW: http://www.westag-getalit.de
ISIN: DE0007775207, DE0007775231
indexes:
stockmarkets:
sector: Building materials
language: English

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