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).


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

emitter: Westag & Getalit AG Hellweg 15 D-33378 Rheda-Wiedenbrück phone: +49 (0)5242 17 0 FAX: +49 (0)5242 17 75000 mail: WWW: ISIN: DE0007775207, DE0007775231

end of announcement euro adhoc


sector: Building materials language: English