25.05.2005 – 07:36

SW Umwelttechnik Stoiser & Wolschner AG

euro adhoc: SW Umwelttechnik Stoiser & Wolschner AG
Quarterly or Semiannual Financial Statements
SW Umwelttechnik announces first-quarter results

Disclosure announcement transmitted by euro adhoc.
  The issuer is responsible for the content of this announcement.

25.05.2005

* Revenue hit by bad weather in March
* Order backlog 52% up
* 15% revenue growth forecast for year as a whole

SW Umwelttechnik’s revenue edged down to EUR8.1 million (m) in the
first quarter of 2005 (Q1 2004: EUR8.6m). The fall was caused by
severe weather in Central and Eastern Europe in March which led to
the suspension of construction works.

The company’s figures for the first quarter are a poor guide to the
year as a whole. The period normally accounts for only 8-15% of
annual revenue, and results are strongly influenced by local weather
conditions. The differing seasonal distribution of income and
expenses always leads to negative results for the quarter.

The relative contributions of the company’s geographical markets
reflected bad weather in Hungary, as well as the first signs of
success for retrenchment in the Austrian operations. Hungary
accounted for 66% of revenue (Q1 2004: 80%), Austria for 29% (Q1
2004: 17%), and other EU and non-EU countries 5% (Q1 2004: 3%). In
segment terms, 26% (Q1 2004: 24%) of total revenue was generated by
the Water Conservation sector, 22% (Q1 2004: 13%) by the Engineering
sector, and 52% (Q1 2004: 63%) by the Infrastructure sector.

Due to the downturn in revenue EBIT was negative by EUR3.4m, compared
to EUR2.0m in the like period of 2004, and EBITDA was negative by
EUR2.4m (Q1 2004: EUR1.1m). The deterioration in results for the
first quarter was attributable to weather related delays in
deliveries in March. Due to the devaluation of the Hungarian forint
against the euro the net result for financial items moved from a
positive amount of EUR0.6m to finance cost of EUR0.4m. In consequence
the loss on ordinary activities widened to EUR3.7m from EUR1.4m in
the like period of 2004.

SW Umwelttechnik’s head count rose by 4.5% year on year to stand at
722 (Q1 2004: 691). The figure includes 38 Romanian employees
currently being trained for their coming duties at the new factories
in Romania.

Investment focusing on Romania

This year the lion’s share of capital expenditure — over 75% — is
again being channelled to operations in CEE countries. The most
modern pipe works in Hungary is under construction at the company’s
South Budapest site, and is due to go into operation in the third
quarter of 2005. A new factory will also be built in Timisoara,
Romania during the year, and preparations for the construction of a
production facility in the greater Bucharest area are under way.
Meanwhile SW Umwelttechnik is looking at the possibility of a third
Romanian site.

Some EUR1.2m of this year’s EUR7.8m investment budget — more than
doubled from 2004 — was spent during the first quarter, EUR1m going
to the expansion project at the South Budapest location and EUR0.2m
to Austrian operations.

Outlook: good prospects for 2005

Management is optimistic about prospects for the year as a whole, and
anticipates revenue growth of about 15%. 
* The ground lost during the first quarter was made up by an increase
of over 15% in revenue in April.
* Order backlog as at 31 March was 55% up year on year at EUR44m. SW
Umwelttechnik made excellent progress in Romania where new contracts
for two wastewater treatment plants, worth a total of about EUR2m,
were won in March.
* Market conditions for low-margin standard products are seen
remaining difficult in Austria. However the drop in demand is
expected to be offset by increased sales of separators, tunnel
run-off purification systems, surface water protection systems and
pillars.
* The new Budapest pipe works should boost the company’s share of the
Hungarian civil engineering market, which will play an increasingly
important role because of the decline in state investment in building
construction.
* A sales network is being built up in Romania, and key personnel are
being trained in Hungary for their work at the new factories.
Production at the new Timisoara works will start up this year

end of announcement                    euro adhoc 25.05.2005 07:00:00 

Further inquiry note:

DI Heinz Wolschner, Vorstand der SW Umwelttechnik
Tel.: 0043/463/32109-0, Fax: 0043/463/37667
MMag. Christian Riel, Finanzen/Investor Relations
Tel.: 0043/664/4337105, Fax: 0043/1/3688686,
mailto:christian.riel@sw-umwelttechnik.at
Website: http://www.sw-umwelttechnik.at

Branche: Technology
ISIN: AT0000808209
WKN: 080820
Index: WBI, ATX Prime, ViDX
Börsen: Berliner Wertpapierbörse / free trade
Baden-Württembergische Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Wiener Börse AG / official dealing