euro adhoc: SW Umwelttechnik Stoiser & Wolschner AG / Quarterly or Semiannual Financial Statements / SW Umwelttechnik announces results for first half of 2003 (E)

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  • 8% revenue growth
  • New south Budapest site making market inroads
  • German factory closed
  • First biogas plant order received in Lower Austria

After reporting a fall in revenue in the first quarter SW Umwelttechnik recorded an 18% year-on-year increase in the second quarter, for an 8% gain on the first half as a whole. The main reason for the sales growth was the company’s new south Budapest factory, which was also responsible for a rise in the proportion of revenue accounted for by the Hungarian market from 54% to 68%. Austria contributed 23% of total revenue (H1 2002: 36%), and other EU and third countries an unchanged 9%.

There was also a shift in the segmental breakdown of revenue, with the share accounted for by the company’s Infrastructure sector expanding from 33% to 36% — again, because of the south Budapest works. The proportion of revenue generated by the Engineering sector rose from 24% to 32% on the back of a strong second quarter performance, while that contributed by the Water Conservation sector shrank from 44% to 31% due to restructuring and the dropping of some product lines.

First-half earnings before interest and tax (EBIT) were negative to the tune of EUR 1.1 million (m), having been positive by EUR 0.6m in the first half of 2002. Earnings do not yet reflect the success of the initial sales drive by the south Budapest operation, which should boost results in coming months. EBITDA was down to EUR 0.8m from EUR 2.2m in the same period of 2002.

Finance cost climbed from EUR 0.1m to EUR 2.1m as a result of the unexpected devaluation of the Hungarian forint. In contrast to the exchange gains recorded in the past few years, euro denominated refinancing in Hungary led to an exchange loss of EUR 1.4m during the period. The previous year’s figure also included gains on the disposal of a minority holding. The loss on ordinary activities widened from EUR 0.4m to EUR 3.3m. In line with downsizing plans, the company’s head count declined to 718 from an average of 770 in the same period of 2002.

Capital expenditure

Some 60% of the 2003 investment programme was implemented in the first half; 75% of all spending was channelled to the Hungarian operations. The main focus of investment activity was the next ramp-up phase at the south Budapest factory.

Research and development

The main thrusts of the R&D effort were experiments with high strength spun concrete pillars at the Vienna University of Technology, which were successfully completed in the first half, and investigations into the effectiveness of road stormwater purification systems, carried out in conjunction with the University of Natural Resources and Applied Life Sciences, Vienna.


Management is standing by its cautiously optimistic view of the outlook for the year as a whole, and anticipates revenue growth and a marked improvement in EBIT.

  • Despite growing budget deficits construction activity remains robust in Hungary, providing a conducive climate for continued growth. However public funding constraints are affecting SW Umwelttechnik’s Engineering sector in that country. The fall-off in order bookings by this business was also responsible for the overall decline in order backlog to EUR 25.1m from EUR 34.6m in the first half of 2002.
  • Following the successful launch of products from the south Budapest factory significant improvements in earnings are likely in coming months.
  • In Austria, planned budget consolidation measures and the general weakness of activity in the construction sector mean that stabilisation of sales at a low level is the best that can be expected. However new products such as biogas plants and spun concrete masts mean that SW Umwelttechnik can swim against the tide to some extent. During the first half the company won promising orders for both types of product.
  • In Germany the Schongau factory was closed down in response to the highly negative trading environment, and the production equipment was relocated to profitable operations in Hungary.
  • Recently founded subsidiaries in Romania and Slovakia are currently being used as a channel for exports from Hungary. Consideration is being given to setting up production operations in these countries.

Further inquiry note:
DI Heinz Wolschner, Vorstand der SW Umwelttechnik
Tel.: 0043/463/32109-0, Fax: 0043/463/37667
MMag. Christian Riel, Finanzen/Investor Relations
Tel.: 0043/664/4337105, Fax: 0043/1/3688686,
Tel: 0043-463-32109
FAX: 0043-463-37667

end of announcement euro adhoc

Emittent: SW Umwelttechnik Stoiser & Wolschner AG
Bahnstraße 87-93
AT-A-9020 Klagenfurt
Tel: 0043-463-32109
FAX: 0043-463-37667
ISIN: AT0000808209
WKN: 080820
Indizes: ATX Prime, ViDX, WBI
Börsen: official dealing Wiener Börse AG; free trade Berliner Wertpapierbörse, Börse Düsseldorf, Baden-Württembergische Wertpapierbörse
Branche: Technology
Sprache: Englisch