euro adhoc: Westag & Getalit AG / Clearly improved pre-tax profit on stable sales Management proposes dividend of EUR 0.28 per ordinary share and EUR 0.34 per preference share (E)

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In 2003, incoming orders in the all-German structural engineering sector - one of the main indicators for Westag & Getalit AG’s business trend - were down 13.2% on the previous year. Notwithstanding this difficult industry environment, Westag & Getalit AG was able to stabilise its sales at EUR 162.8 million, which is on par with the previous year’s level (EUR 162.7 million). A slight decline in domestic sales to EUR 137.4 million was compensated for by a steady increase in international sales to EUR 25.4 million (previous year: EUR 24.0 million). Our export share rose to a gratifying 15.6% (14.8%).
Numerous cost-cutting measures taken in 2003 allowed our company to raise the pre-tax profit from EUR 1.2 million in the previous year to EUR 3.4 million. It is particularly gratifying to see that all three divisions posted a positive operating result. Almost all the restructuring measures launched already in 2002 took full bottom-line effect in 2003. The net income amounted to EUR 1.8 million (previous year EUR 1.6 million). The 2003 DVFA/SG earnings per share amounted to EUR 0.32 (previous year: EUR 0.11).
At yesterday’s meeting the Supervisory Board of Westag & Getalit AG approved the financial statements for 2003. The Executive Board and the Supervisory Board will propose payment of a dividend of EUR 0.28 per ordinary share (no dividend paid in previous year) and of EUR 0.34 per preference share (previous year: EUR 0.12) to the annual general meeting scheduled to take place in Rheda-Wiedenbrück on August 12, 2004.
The executive contract closed with Mr. Thorsten A. Spengler expires in mutual agreement to the 31.12.2004. Westag & Getalit AG has already begun the search after a suitable successor.
The general economic environment in Germany remains characterised by insecurity. While we expect only a slight sales increase in the domestic business, we see substantial growth potential on the export front.
We will continue our aggressive cost management policy. However, the level of market prices in 2004, which will have a significant bearing on our earnings, remains an unknown quantity; the fierce competition among distributors and retailers obviously has implications for our prices.
In case that the general conditions for construction investment in Germany show a positive development and that we are able to capitalise on our export opportunities, we assume that Westag & Getalit AG will be able to continue its positive earnings trend.

Further inquiry note:
Felix Huisgen
Tel.: +49 (0)5242 17 5350
Tel: +49 (0)5242 17 0
FAX: +49 (0)5242 17 75000

Emittent: Westag & Getalit AG Hellweg 15 DE-33378 Rheda-Wiedenbrück Tel: +49 (0)5242 17 0 FAX: +49 (0)5242 17 75000 Email: WWW: ISIN: DE0007775207, DE0007775231 WKN: 777520, 777523 Indizes: Prime All Share, Prime Standard Börsen: official dealing Frankfurter Wertpapierbörse; free trade

end of announcement euro adhoc

Berliner Wertpapierbörse, Bremer Wertpapierbörse (BWB), Börse Düsseldorf, Baden-Württembergische Wertpapierbörse
Branche: Building materials
Sprache: Englisch