Ad-hoc | 31 August 1998 08:42

Ad hoc-Service: Wienerberger Baustoffind. 1-6 98

—————————————————————— Ad hoc-Service: Wienerberger Baustoffind. 1-6 98 Ad hoc-announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. —————————————————————————— Results First Six Months 1998 According to International Accounting Standards EBIT-increase of 25.5 % to ATS 1,101 million Good development of industrial core business: Brick segment continues to expand in Eastern Europe, very difficult market situation in Germany used for anti-cyclical expansion, renewed growth in Pipe segment, Metallurgy registers record profits. Full concentration on bricks and pipes Ambitious 1998 goal 20 % increase in income from industrial activities! The Wienerberger Group registered a positive overall development during the first half of 1998. On the one hand the successful industrial expansion continued: twelve additional brick and pipe plants in East and West Europe started production for Wienerberger. Thus, the industrial portfolio comprises 160 plants in 21 countries. On the other hand results rose again. The interim financial statements were prepared for the first time in accordance with International Accounting Standards (IAS). Prior year data was adjusted to meet IAS standards. During the first half of 1998, sales rose by 9.3 % to a level of ATS 7,871 million. Operating income increased by 25.5 % to ATS 1,101 million and income before tax grew by over 35.9 % to ATS 1,098 million. This improvement in earnings was based entirely on the good development of our industrial activities, since results for the first six months of this year include no income from the Real Estate projects. After adjustment of extraordinary items, EBIT of the industrial activities increased by 21 % to ATS 905 million. The business segment Wall, Ceiling, and Roofing Systems registered an EBIT of ATS 731 million compared to prior-year IAS-data of ATS 407 million. The upward trend which began last year in Eastern Europe continued. The market situation in Germany remained tense. We have decided to use this situation as an opportunity for anti-cyclical expansion. The business segment Pipe Systems and Sewage Technology registered a distinct increase in income after the unsatisfactory results recorded in the prior year. EBIT reached ATS 96 million after last years ATS 24 million. Once again, Treibacher Industrie AG registered excellent results, operating income nearly doubled to a level of ATS 264 million. 1997 income in the real estate segment was unusually high as a result of the ATS 581 profit earned on the sale of the successful Business Park Vienna project. During the second half of 1998, realization of the adjoining real estate project Wienerberg City is expected to generate income of about ATS 180 million. The Wienerberger Share outperformed the ATX during thefirst months of 1998, exceeding the ATS 3,000 mark. Adverse conditions on international capital markets had a negative influence also on our stock at the beginning of the second half of the year, and its movement followed both the ATX and the European Building materials index. Our goal for 1998 remains unchanged a 20 % increase in income from industrial activities although the economic condition of the brick industry in Germany has further deteriorated. At the same time, we plan to further expand our core business. Our primary goal is the continuing long-term growth of our industrial activities. Wienerberger Baustoffindustrie AG, The Managing Board Vienna, August 31st, 1998 Attachment: – Key data on Results First Six Months 1998 Key data Results First Six Months 1998 According to International Accounting Standards Sales in ATS mill. 1 – 6 / 1998 1 – 6 / 1997 change Wall, Ceiling 4,253 4,138 + 2.8 % and Roofing Systems Pipe Systems 1,639 1,635 + 0.2 % and Sewage Technology Metallurgy 1,852 1,308 + 41.6 % Real Estate 127 121 + 5.0 % Group total 7,871 7,202 + 9.3 % EBIT in ATS mill. 1 – 6 / 1998 1 – 6 /1997 change Wall, Ceiling 731 1) 407 + 79.6 % and Roofing Systems Pipe Systems 96 24 > 100 % and Sewage Technology Metallurgy 264 – 135 2) > 100 % Real Estate 10 581 3) – 98,3 % Group total 1,101 877 4) + 25.5 % 1) incl. ATS 186 million book gain on sale of Sturm Group concrete business 2) excl. Treibacher Schleifmittel: ATS + 135 million 3) incl. profit on sale of Business Park Vienna: ATS 581 million 4) major difference to Austrian commercial law is the definition of extraordinary items (1- 6/1997: ATS – 453 million) For additional and up-to-date information, visit our Wienerberger Home Page http://www.wienerberger.com End of Message