Economics by Tile International
Wienerberger reports growth in net profits
Wienerberger Group remained on track throughout the first nine months of 2016. In total, the Group reported nearly stable revenues of 2.3 billion euros and operating EBITDA of 302.6 million euros, up by 3% from the same period of the previous year. Since the beginning of the year, Wienerberger’s net profit increased significantly to 68.7 million euros, as compared with 23.3 million euros in the previous year. The strong performance of the plastic pipe business in the Nordic markets as well as growth in the brick business in Europe, the USA and Canada were among the main factors accounting for the positive development.
Partly due to the slight improvement in average prices, the Clay Building Materials Europe division reported a 2% increase in revenues to 1.28 billion euros along with sharp growth in EBITDA (+15% to 2016.9 million euros). Sales of clay blocks and roof tiles were boosted by the recovery in the European residential construction market, most significantly in Eastern Europe but also in Germany, the Netherlands and France. The recovery in Belgium was only felt in the third quarter. After the UK’s vote to leave the European Union, the UK brick and roof tile market developed better than expected and sales exceeded those of 2015.
The US and Canadian brick business performed strongly, especially in the third quarter of 2016. In total, the North America Division reported a 5% increase in revenues to 220.3 million euros (+5%) despite the fall in the plastic pipe business.
Wienerberger expects to close the year with growth in revenues and profits for its European and North American Brick Divisions and with a consolidated group EBITDA of 405 million euros.