26.05.2004 – 07:38

SW Umwelttechnik Stoiser & Wolschner AG

euro adhoc: SW Umwelttechnik Stoiser & Wolschner AG
Quarterly or Semiannual Financial Statements
SW Umwelttechnik announces 1. results for first quarter of 2004 (E)

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

* Continued upturn in revenue and earnings
* Good capacity utilisation at Hungarian factories
* Order bookings more than trebled in first quarter
* Positive impact of forint revaluation on finance cost

In the first quarter of 2004 SW Umwelttechnik’s revenue increased by
4.0% to EUR8.6 million (m) (Q1 2003: EUR8.3m). Growth was driven by
strong capacity utilisation at the company’s Hungarian factories,
which more than offset the effects of delays in contract awards to
its Engineering sector as a result of public spending restrictions
and of flat construction activity in Austria.

Strong demand in Hungary was reflected by an increase in the
contribution of this geographical market to group revenue to 80%,
from 68% in the like period of 2003. revenue generated in Austria
fell from 21% to 17% of the total, while other EU countries accounted
for 3% of turnover. In terms of the group’s business segments, there
was a temporary rise in the revenue contribution of the
Infrastructure sector from 39% to 63% due to exceptionally high
capacity utilisation in the first quarter. The contributions of the
Engineering and Water Conservation sectors fell from 30% to 13%, and
from 31% to 24%, respectively.

It should be noted that the first quarter is an unreliable guide to
performance over the year as a whole. It normally accounts for only
10--15% of annual revenue due to seasonal factors. The differing
seasonal distribution of income and expenses leads to negative
results for the period.

In the first quarter of 2004 EBITDA was negative by EUR1.1m — a gain
of 12.8% from the EUR1.3m loss in the like period of 2003 — and the
loss before interest and tax narrowed by 12.1% to EUR1.1m (Q1 2003:
negative EBIT EUR1.3m). These improvements reflect the extensive
investment programmes and restructuring of recent years. Due to the
revaluation of the Hungarian forint against the euro the net result
for financial items swung from finance cost of EUR0.9m to positive
amount of EUR0.6m, helping to cut the loss on ordinary activities
from EUR3.2m to EUR1.4m.

Investment programme focused on Hungary

Following the completion of the major investments of the past three
years at a cost of EUR22m, the investment budget for 2004 has been
set at approx. EUR2.5m. During the first quarter EUR0.6m or 24% of
this amount was spent. This year the lion’s share of capital
expenditure —about 70% — will be channelled to operations in CEE
countries.

SW Umwelttechnik’s head count for the period was 1.2% up year on year
at 691 (Q1 2003: 683).

Outlook

Order intake trebled as compared to the same period of 2003, lifting
order backlog by 13.2% to EUR28.3m. This confirms the positive trend
seen in the second half of 2003, and management anticipates a marked
improvement in earnings in 2004.

* EU enlargement is providing a major impetus to economic growth in
  SW Umwelttechnik’s main market. 
* In Hungary, demand from commercial and industrial customers for 
  the Infrastructure sector’s products is growing. The good figures 
  from this business show the potential created by the investment 
  programme.
* Following last year’s problems due to delays in Hungarian contract
  awards for wastewater treatment plants and sewerage projects, and 
  uncertainties about Austrian electricity injection tariffs for  
  biogas plants, in the first quarter of 2004 the Engineering sector
  registered record order intake, meaning that good capacity  
  utilisation is assured for the rest of the year. 
* In Austria, where trading conditions remain difficult, the company
  is continuing to replace low-margin standard products by 
  technically advanced solutions. By strengthening its ranges of 
  surface water protection systems and masts, it hopes to increase  
  its shares of these profitable market segments.
* Another favourable effect of EU enlargement is new openings for 
  exports from the company’s current home markets to accession 
  states. A sales drive has been mounted to tap these opportunities.

end of announcement        euro adhoc 26.05.2004

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: ATX Prime, ViDX, WBI
Börsen: Wiener Börse AG / official dealing
Berliner Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Baden-Württembergische Wertpapierbörse / free trade