First quarter results confirm Wienerberger strategy

Wien (OTS) -
- Continuation of growth course despite severe winter and weaker
economic environment
- Group revenues +7% to Euro 333.8 million
- EBITDA + 5% to Euro 54.3 million
- Sustainable goal also valid and unchanged for 2005: Earnings +10%

Modest growth in spite of difficult operating environ-ment

Wienerberger recorded satisfactory growth in earnings for the
first quarter of 2005 in spite of a particularly severe winter and
weaker economic environment. Group revenues rose by 7% to Euro 333.8
million and EBITDA increased 5% to Euro 54.3 million. "The first
three months were a challenge for us", commented Wolfgang Reithofer,
CEO of Wienerberger AG, as he presented the results. "The winter
brought construction activity in large parts of Europe to a virtual
standstill well into March, and the early Easter holidays further
reduced the number of available working days. Furthermore, the global
economy has slowed somewhat. This environment has confirmed our
strategy and the effectiveness of our geographic portfolio." Local
declines in sales volumes on markets in Central-East and Central-West
Europe were largely offset by positive development in North-West
Europe and the USA, which demonstrates that the frequently cited risk
diversification really works. The first quarter has little predictive
value for the entire year in the building materials industry for
seasonal reasons because results are highly dependent on weather
conditions in the individual markets, and Reithofer therefore added
with optimism: "In spite of weakness on individual markets, we will
continue to grow our earnings. Our sustainable goal - to increase
earnings by at least 10% each year -remains valid and unchanged also
for 2005."

In addition to the healthy market environment in North-West
Europe, the first full consolidation of Koramic Roofing and
thebrickbusiness had a positive impact on Group revenues. Sales
volume declines in Hungary, Poland and Germany were largely offset by
price and sales volume increases in Belgium, Holland und France.
Following a high level of investment in the previous year and a
resulting increase in depreciation, Group EBIT fell 25% to Euro 16.1
million for the first quarter of 2005. Profit before tax also showed
a drop of 25% to Euro 10.3 million. Profit after tax reached Euro 9.3
million for the reporting period, whereby a reduction in the tax rate
from the prior year level limited the decline in profit after tax to
15%. Earnings per share totaled Euro 0.13 versus Euro 0.17 for the
first quarter of 2004, which is also a result of a higher number of
shares outstanding to 73.5 million after the capital increase (2004:
64.6 mill. shares).

Asset and Financial Position

Growth investments made during the first three months of the year
led to an increase of Euro 32.9 million in non-current assets. Net
debt rose temporarily by Euro 154.6 million following a seasonal rise
in inventories and investments, and will be reduced by cash flow from
operations throughout the remainder of the year dependent on
investment activity. Group equity increased 1% to Euro 1,382.7
million as the result of Group net profit as well as positive foreign
currency adjustments, primarily from the US dollar.

Segments

Positive development in Czech Republic, Romania and Slovakia,
declines in Hungary and Poland

Central-East Europe

Central-East Europe was forced to record a decline in earnings for
the first quarter of 2005 because of the long winter and an unusually
strong comparable prior year period. Revenues fell by Euro 10.5
million (-14%) to Euro 63.8 million and EBITDA dropped Euro 3.6
million (-21%) to Euro 14.1 million. "In addition to the weather and
advance purchases prior to the EU expansion in May 2004, the slowdown
in Central-East Europe resulted above all from weakness in new
residential construction in Hungary following a cutback in federal
housing subsidies", explained Johann Windisch, member of the Managing
Board of Wienerberger AG for Central-East and Central-West Europe.
"Performance in the Czech Republic, Romania and Slovakia was sound
with satisfactory growth and a further improvement in earnings."
Concrete paver (Semmelrock) and concrete tile (Bramac) activities
were able to match prior year results.

Stable earnings in Italy and Switzerland cannot offset slowdown in
Germany

Central-West Europe

Central-West Europe reported a decline of Euro 9.4 million (-15%)
in revenues to Euro 54.0 million as well as a decrease of Euro 4.8
million (-66%) in EBITDA to Euro 2.5 million. "This development was
triggered primarily by the bad weather and early Easter holidays,
which brought construction activity in Germany to a virtual
standstill", commented Windisch. Significant declines were recorded
in the brick area, while the roofing sector profited from the full
consolidation of Koramic Roofing. Switzerland and, to a greater
extent, Italy were able to resist the negative impact of the weather
and holidays, and stabilize revenues and earnings at a satisfactory
level.

High earnings plus for most important growth driver

North-West Europe

The North-West Europe segment not only served as the main driver
for growth throughout the entire past business year but also during
the first quarter of 2005, with higher earnings reported in nearly
all countries. Despite a delay in the start of the building season,
revenues increased Euro 30.9 million (+26%) to Euro 150.9 million and
EBITDA rose by Euro 11.6 million (+66%) to Euro 29.3 million. "This
development was supported primarily by the full consolidation of
Koramic Roofing and thebrickbusiness", observed Heimo Scheuch, member
of the Managing Board for North-West Europe. "We were also able to
increase prices slightly on most markets while sales volumes remained
stable, which had a positive impact above all in Belgium and
Holland."

Strong US demand, high capacity utilization and good price level
trigger sizeable revenues and EBITDA growth

USA

"New residential construction in the USA also remained strong
throughout the first quarter of 2005", noted CFO Hans Tschuden. "This
momentum is also reflected in an improvement in results: we were able
to increase revenues by Euro 10.9 million (+19%) to Euro 68.3 million
and EBITDA by Euro 1.5 million (+15%) to Euro 11.8 million." Tschuden
attributed this positive development to the continuing strong demand
for bricks as well as the high utilization of capacity and good price
level.

Strategy and Outlook

Goal for 2005 valid and unchanged: increase of at least 10% in
earnings

Wienerberger expects positive or at least stable developments on
the majority of its markets during this business year. The Company
also intends to adhere to its strategy for profitable growth in 2005,
with current plans calling for growth investments of at least Euro
250 million: 70% will represent bolt-on projects in new plants or the
expansion of existing facilities and 30% is reserved for takeovers.
Depending on existing opportunities - the projects will be ranked by
profitability and availability - larger acquisitions are also
possible. One-half of the investments are expected to be made in
Eastern Europe, one-third in Western Europe and the remainder in the
USA. "In the growth markets of Eastern Europe and the USA, we will
work to expand our positions in growing with the market", commented
Reithofer on plans for 2005. "We have started to export our products
into Bulgaria and, similar to the Ukraine, are preparing for our
market entry with production facilities. Construction is also
progressing on our new plant in Kiprevo, Russia. In Western Europe,
we will make further acquisitions to play an active role in the
consolidation of the market and also expand our positions."

Wienerberger first quarter results:
http://www.ots.at/fileservice/wienerbergere.doc

Download of the Report on the First Quarter of 2005 available and
live webcast of a conference call with investors and analysts at
13.00 CET: www.wienerberger.com

Rückfragehinweis:
Thomas Melzer
Public and Investor Relations
Tel.: +43(1)60192-463
[email protected]

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