Wienberberger, a leading manufacturer of bricks in pipes in Europe reported FY 2013 results this morning that came in slightly ahead of consensus forecasts. Revenue for the 12 month period amounted to €2.66 billion (est. €2.66 billion) while EBITDA came in at €266.5 million (est. €260.3 million). The group reported a net loss of €38.9 million for 2013 (est. loss of €42.2 million). Net debt declined to €539 million (2012: €602 million).
<p>
Wieneberger continues to be negatively impacted the the weak construction environment across Europe, where the company generates 90% of total sales but management are seeing signs of improvement going in to next year. The deterioration in construction, impacting Wienerberger’s clay operations was offset to a degree by increased activity in the pipes business that generated EBITDA of €100.3 million (+49% YoY). There was also a sharp uptick in trading in the US with revenue increasing to €224.7 million (+16%) leading to an increase in EBITDA to €13.2 million (+35% YoY).
<p>
Going forward, management are providing an outlook for 2014 in which management expect to see a stabilization of end market demand in Europe whereas positive recent trends in the US are expected to continue. The company is now expecting to be profitable in 2014, reversing recent losses and for the business to generate an EBITDA of €300 million (est. €308 million), largely in line with where current consensus forecasts stand.
<p><h5>David Holohan</h5>
Disclaimer: www.merrion-capital.com/disclaimer
Merrion Stockbrokers Limited (registration no. 307878)
is a limited liability company whose registered office is at
Block C, The Sweepstakes Centre, Ballsbridge, Dublin 4, Ireland.