Wienerberger AG: Wienerberger remains optimistic for 2013

Vienna (pta005/11.07.2013/08:00 UTC+2) After weather-related weak start, normalization of market activities in Q2
- Bricks & Tiles Europe: no catch-up effects in relevant markets during Q2
- Pipes & Pavers: development according to plan in H1
- North America: moderate growth in H1
- Russia & India: continued sound development

Wienerberger AG today issued an update on the development of business in the first six months and an estimate for market trends during the remainder of this year. Heimo Scheuch, Chief Executive Officer of Wienerberger AG, summarized the most important developments. "Business is generally proceeding as planned, but the expected catch-up effects in the Bricks & Tiles Europe Division failed to materialize in the second quarter and are no longer expected to come through during the rest of the year. The Pipes & Pavers Division recorded stable development, with Pipelife generating the forecasted contribution of approx. 30 million Euro to operating EBITDA for the first five months. In North America, we saw moderate volume increase in the brick segment during the first half-year and expect accelerated growth over the coming months. In total, I am therefore very optimistic that we will see a substantially better second half from the revenue and earnings standpoint, despite the continuing difficult market environment for new residential construction in Europe."

Market environment still difficult for Bricks & Tiles Europe Division
The Bricks & Tiles Europe Division was faced with a difficult market environment and, above all, with severe weather conditions during the first half-year. Heimo Scheuch explained: "Construction activity in Europe, which only started during the second week in April because of the unusually long winter, was further slowed by heavy rainfall and flooding in parts of the region at the end of May and the beginning of June. This had a particularly strong effect on sales of roof tiles, which make an important contribution to EBITDA in this division. The construction industry did not expand capacity during the second quarter to handle the backlog from the early part of the year but simply postponed projects, and the expected catch-up effects in the relevant markets did not materialize. As a result, the Bricks & Tiles Europe Division lost roughly 20 million Euro of the operating EBITDA forecasted for 2013 during the first six months. Developments like this are, unfortunately, not predictable and count even more because the division's employees are working very hard to meet this year's targets." Average prices in the Bricks & Tiles Europe Division should be slightly lower than the prior year at the end of the first six months, whereby Western Europe was able to offset cost inflation with price adjustments despite a market-related decline in volumes. In Eastern Europe, the weaker demand for building materials in some regions led to increased pressure on prices. Wienerberger used its cost advantages as the basis for sales promotions in selected markets and thereby strengthened its market positions. Volumes in Eastern Europe remained stable during the second quarter, in spite of the market trends, and supported an increase in market shares.

Slight volume declines expected in Bricks & Tiles Europe Division for full year
Wienerberger is expecting a continuation of the difficult market environment in Europe for the full year and, as a result, moderate volume declines in the Bricks & Tiles Europe Division. Further, in part substantial, declines in new residential construction are forecasted for the Netherlands, Belgium, France, Poland and the Czech Republic. The market in Hungary did not bottom out as expected, but recorded a further significant drop in the demand for wall building materials. In Germany Wienerberger sees stable development in single- and two-family housing construction after the weak start at the beginning of 2013. For Great Britain the Group expects a 9% rise in new residential construction by year-end. In Russia and India, the sound development in new residential construction continues.

Expected EBITDA contribution of 30 million Euro from Pipelife
Business in the individual segments of the Pipes & Pavers Division was not only negatively influenced by the bad weather during the first three months, but also by partially difficult end markets. However, the division was able to close the first half-year with stable development in line with expectations. The plastic pipe producer Pipelife benefited, above all, from a stable to slightly positive operating environment in its key North European markets as well as orders from the international project business. These factors partly offset the weather-related declines at the beginning of the year and weaker demand in the Netherlands, France and Poland. Despite the pressure on prices in these difficult markets, Pipelife held margins at a constant level with strict price management. Pipelife will therefore contribute approx. 30 million Euro to operating Group EBITDA for the first five months of 2013 as expected. Steinzeug-Keramo recorded an increase in volumes during the second quarter after a weather-related weak start into the year and also closed the first six months on target. Semmelrock was confronted with a very difficult market environment as well as double-digit volume declines in parts of Eastern Europe. However, the cost savings measures implemented in 2012 supported an increase in earnings and an improvement in margins over the first half of the previous year.

North America with moderate growth in H1
The North America Division recorded stable volume development during the first quarter and rising demand for bricks in the second quarter. The result was a moderate increase in volumes for the first six months. Despite pressure on prices in individual regions, average brick prices remained roughly at the prior year level. Wienerberger expects accelerated growth in the second half also based on latest U.S. Census Bureau reports which indicate a 16% increase in single-family housing starts in the USA for the full year.

Outlook
Wienerberger remains optimistic for the second half of 2013. Heimo Scheuch added: "Our hopes that we would be able to offset the weak first quarter were, unfortunately, not met. Due to the long winter and the rainy period in May and June, EBITDA is roughly 20 million Euro below our original estimate. Apart from that, we are on target in all areas. The restructuring measures announced last year are being implemented as planned and should produce the expected 18 million Euro of cost savings this year. The market environment for the Bricks & Tiles Europe Division will remain difficult, but I expect a stronger contribution to earnings during the second half-year - above all from the roof segment. The Pipes & Pavers Division should generate a slight organic increase in earnings for the full year. In North America, I expect accelerated growth through the end of the year. We will, in any event, continue to work hard to meet our ambitious goals."

Wienerberger Group
Wienerberger is the world's largest producer of bricks (Porotherm, Terca) as well as number one on the clay roof tile market (Koramic, Tondach) in Europe and the concrete paver market (Semmelrock) in Central-East Europe. In pipe systems (Steinzeug-Keramo ceramic pipes and Pipelife plastic pipes), the company is one of the market leaders in Europe. Wienerberger generated revenues of 2,356 million Euro and operating EBITDA of 246 million Euro in 2012 with 221 plants. In May 2012 Wienerberger completed the full takeover of Pipelife and set an important milestone in the expansion of its core business.

For additional information contact:
Barbara Braunöck, Head of Corporate Communications
T +43 1 601 92 - 10221 | communication@wienerberger.com

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Wienerberger AG is a pure free float company, whereby the majority of shares are held by Austrian and international institutional investors. Additional information on the shareholder structure is provided under http://www.wienerberger.com/investor-relations/the-wienerberger-share/the-wienerberger-share/shareholder-structure

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Emitter:	Wienerberger AG Wienerbergstraße 11 1100 Wien Austria
Contact Person:	Barbara Braunöck
Phone:	+43 1 60192-10221
E-Mail:	communication@wienerberger.com
Website:	www.wienerberger.com
ISIN(s):	AT0000831706 (Share)
Stock Exchange(s):	Vienna Stock Exchange (Official Trade)