EANS-Adhoc: Westag & Getalit AG
Dividends remain unchanged at EUR 0.94 per
ordinary share and EUR 1.00 per preference share in spite of the commodity
price-induced decline in earnings
-------------------------------------------------------------------------------- ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro adhoc with the aim of a Europe-wide distribution. The issuer is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- 22.03.2012 Against the background of a positive overall trend in the German construction sector and good export sales, Westag & Getalit AG was able to increase its sales revenues by a pleasant 4.8% to EUR 227.1 million (2010: EUR 216.6 million). Export sales rose at a disproportionate rate of 13.8% to EUR 48.7 million (2010: EUR 42.8 million). As a result, the export share climbed from 19.8% in the previous year to 21.5%. Earnings before income taxes amounted to EUR 11.8 million in 2011, which represents a notable decline from the previous year´s EUR 15.1 million. The unsatisfactory earnings performance is mainly attributable to dramatic increases in the prices of chipboard and oil-based raw materials. The prices of other commodities such as wood and paper picked up markedly as well. The sharp rise in transportation charges and energy costs also had an adverse impact. Net profit declined in line with earnings before taxes and reached EUR 8.2 million (2010: EUR 10.7 million). In accordance with amended IFRS regulations, earnings per share are stated separately for ordinary and preference shares for the first time in 2011. EPS amounted to EUR 1.48 per ordinary share (2010: EUR 1.92) and to EUR 1.54 per preference share (2010: EUR 1.98). In spite of the decline in earnings, the Management Board and the Supervisory Board will propose an unchanged dividend of EUR 0.94 per ordinary share and of EUR 1.00 per preference share to the Annual General Meeting, which will be held in Rheda-Wiedenbrück on August 28, 2012. We are generally optimistic about economic activity in Germany, and especially in the German construction sector. The domestic economy has given impressive proof of its resilience in 2010 and 2011. The construction sector additionally benefits from a clear trend towards selective investments in housing properties. While this means that the economic preconditions are positive, we are well aware of the fact that the risk situation may change at any time if the financial crisis intensifies. Based on these positive economic assumptions, we expect domestic sales revenues to increase. Especially the construction-related distribution units should benefit from growing housing construction. We also project an increase in export sales. Most recently, we demonstrated that we can operate successfully even under very difficult export market conditions - and there are sufficient opportunities and projects which suggest that we will be able to do so in future. Our bottom line is influenced not only by sales revenues but also by the trend in commodity prices, which are currently sending more positive signals, following the very unpleasant trend in 2010 and 2011. Indicators point to a stabilisation in the prices of the most important commodities. The trend in oil prices seen in the past weeks is giving cause for concern, however. As we have been able to pass on only part of the huge material price increases to our customers, we will be forced to hold further price talks with our customers. Should these positive effects materialise, we will be able to restore our profitability to past levels. Further inquiry note: Felix Huisgen Tel.: +49 (0)5242 17 5350 E-Mail: huisgen@westag-getalit.de end of announcement euro adhoc -------------------------------------------------------------------------------- issuer: Westag & Getalit AG Hellweg 15 D-33378 Rheda-Wiedenbrück phone: +49 (0)5242 17 0 FAX: +49 (0)5242 17 75000 mail: ir@westag-getalit.de WWW: http://www.westag-getalit.de sector: Building materials ISIN: DE0007775207, DE0007775231 indexes: Prime All Share stockmarkets: free trade: Berlin, Stuttgart, regulated dealing: Düsseldorf, regulated dealing/prime standard: Frankfurt language: English
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