euro adhoc: Westag & Getalit AG
quarterly or semiannual financial statement /
Strong sales and earnings growth in first half of 2006; Dividend of EUR 0.48 per
ordinary share and EUR 0.54 per preference share for 2005
approved
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
08.08.2006
The most recent data from the Federal Statistical Office are apparently indicating a turnaround in the German construction sector for the first time in ten years; incoming orders in the building construction sector were up 9.7 % year-on-year in the first five months of 2006. Westag & Getalit AG increased its H1 2006 sales by 15.4 % to EUR 95.4 million, even though it has to be taken into account that the H1 2005 sales were relatively weak at EUR 82.6 million. Clear double-digit growth in exports was again reported by all three Divisions, with sales rising by 37.7 % to EUR 22.5 million (previous year: EUR 16.3 million). The export share climbed to 23.6 % (previous year: 19.8 %).
Although raw materials prices once again increased over the previous year, our H1 2006 earnings before income taxes advanced noticeably to EUR 5.1 million (previous year: EUR 1.5 million) due to an increase in sales and a decline in staff costs as a percentage of sales. Net profit rose to EUR 3.1 million (previous year: EUR 0.9 million), while DVFA/SG earnings per share grew to EUR 0.56 (previous year: EUR 0.16). Instituted on January 1, 2006, our working time model permitted to boost sales and profits virtually without increasing the absolute personnel expenses. This led to a substantial decline in our staff cost ratio which was down to 30.3 % from 34.6 % in the comparative first half of the previous year.
Todays Annual General Meeting in Rheda-Wiedenbrück endorsed the payment of an unchanged dividend of EUR 0.48 per ordinary share and of EUR 0.54 per preference share for the financial year 2005.
Management is confident about the further course of 2006, anticipating additional major stimulation particularly on the export side of our business. While the increase in first-half sales is not likely to be repeated for the full year 2006 on account of the uneven quarter-on-quarter trend recorded in 2005, we expect to report good growth for the current financial year as a whole. Our year-end result will largely be determined by the continued price increases in our raw materials markets and the price development of our finished products. As parts of our customer base are experiencing difficult trading conditions in highly competitive markets, upward adjustments of our prices are somewhat difficult at this time. Given the indicators of a recovery in the German economy, we nevertheless assume that a moderate price increase is attainable. All in all we expect to report another good annual result.
end of announcement euro adhoc 08.08.2006 13:01:07
Further inquiry note:
Felix Huisgen
Tel.: +49 (0)5242 17 5350
E-Mail: huisgen@westag-getalit.de
Branche: Building materials
ISIN: DE0007775207
WKN: 777520
Index: Prime All Share
Börsen: Frankfurter Wertpapierbörse / official dealing/prime standard
Börse Berlin-Bremen / free trade
Baden-Württembergische Wertpapierbörse / free trade
Börse Düsseldorf / free trade