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Abonner SW Umwelttechnik Stoiser & Wolschner AG

SW Umwelttechnik Stoiser & Wolschner AG

euro adhoc: SW Umwelttechnik Stoiser & Wolschner AG
quarterly or semiannual financial statement
SW Umwelttechnik unveils third quarter results

  Disclosure announcement transmitted by euro adhoc. The issuer is responsible
  for the content of this announcement.
quaterly report
07.11.2007
SW Umwelttechnik unveils third quarter results
* POA up by E0.7 million
* Third quarter order intake E42 million
* E25 million investment programme close to completion
Vienna-listed Stoiser & Wolschner AG recorded a sharp rise in  order 
intake  to E42 million(m) in the third quarter of 2007. This pick-up 
in  business  signals an end to the subdued demand encountered in 
Hungary and Romania earlier  in  the year.
For  much  of  2007  trading  conditions  in  Hungary  were  shaped  by   budget
consolidation measures which led  to  the  marked  reduction  in  public  sector
orders. In Romania, urgently needed public sector  investment  was  held  up  by
delays in the release of EU Structural Organisational  Programme  (SOP)  funding
for environmental protection and infrastructure projects.
At E68.5m, revenue for the year to 30 September was only 3% short of the  figure
for the like period of 2006 (E70.5m). However the trend in Hungary  and  Romania
impacted EBIT more strongly, resulting  in  a  decrease  from  E2.5m  to  E2.0m;
EBITDA held steady at E5.6m. POA for the first three quarters 
improved to  E0.6m from a loss of E0.1m in the previous year.
Revenue of E27.0m for the third quarter of 2007 was down on the 
E34.3m  recorded in the same  period  of  2006  -  an  exceptionally 
strong  quarter.  This  was reflected in falls in EBIT to E2.2m (Q3 
2006: E3.7m) and in EBITDA to E3.5m  (Q3 2006: E4.9m).
Hungary's contribution to revenue for the first  three  quarters  
declined  from E47.6m to E42.4m, slipping to 62% of the group  total 
(Q1-Q3  2006:  68%).  The proportion of the total accounted for  by  
Austria  fell  from  24%  to  21%  as expected. Meanwhile Romania's 
share was up to 8% from 5% a year  earlier.  Other EU countries - 
chiefly Italy, Slovakia and Slovenia  -  contributed  9%  of  the 
total compared to 3% in the like period of 2006.
The group's Infrastructure sector put in another  highly  positive  
performance, with  revenue  rising  to  E36.6m  (Q1-Q3  2006:  
E33.4m).  However  the   Water Conservation and Engineering 
businesses returned lower revenue,  with  sales  in Hungary 
particularly hard hit. The Infrastructure sector's contribution  was 
up from 47% to 54%, while that of Water Conservation edged down from 
30%  to  28%, and that of the Engineering sector's shrank from 23% to
18%.
An improvement in finance cost was driven by lower interest expense  
and  modest exchange gains. Finance cost fell  to  E1.4m  from  E2.6m
in  the  first  three quarters of 2006  when  this  item  was  
affected  by  the  devaluation  of  the Hungarian forint. As a result
POA turned positive  by  E0.6m,  compared  with  a E0.1m loss in the 
like period of 2006.
Employees The average head count dropped by 5%, from 821 to 777,  due
to  rationalisation in Hungary (down by 7%) and Austria (down by  
21%).  By  contrast  expansion  in Romania was reflected in an 
increase in the workforce from 55 to 90.
Hungary There was a general weakening in Hungarian  demand,  and  
dramatic  declines  in wastewater disposal and road construction. 
According to  the  Hungarian  Central Statistical Office tenders in 
these segments ran at 70% of the  previous  year's level. SW  
Umwelttechnik  again  significantly  expanded  its  shares  of  these
smaller markets thanks to its cost leadership. The Water  
Conservation  business sector has recently won a number of major 
orders including a contract to  supply products for the  collecting  
sewer  in  Budapest.  It  involves  a  2-kilometre section beneath 
the bed of the Danube, which is  being  built  using  trenchless 
technology. Among other projects are a wastewater collection  system 
for  south Budapest, pipes and shafts for Debrecen, and a E5m 
drainage system  for  the  M7 motorway.
The Infrastructure sector also made strong progress,  and  sales  to 
industrial and commercial customers were up by 15% whereas the  
overall  market  contracted by 11%.
Romania The Infrastructure  sector  is  experiencing  very  strong  
demand  in  Romania, particularly from industrial and commercial 
customers. As already reported,  the first two phases of factory 
construction project in Bucharest for this  business are under way. A
nationwide sales organisation has been built up,  resulting  in an 
overall increase in start-up losses. The effects  of  the  record  
investment programme will not be felt until 2008 as commissioning is 
due to take  place  in November.
The current focus of the Water Conservation sector's activities is on
supplying drainage systems for factories and business  parks.  SW  
Umweltechnik  will  not receive large municipal orders for wastewater
treatment plants until early  2008 when the SOP funding is released. 
EU  finance  for  the  2007-2013  period  will amount to E3.2 
billion, starting at E390m in 2008 and rising to about  E500m  in 
subsequent years.
The Infrastructure sector has already won  contracts  to  supply  
logistics  and shopping centres in Constanta, Targu Mures and Cluj 
with  products  to  a  total value of E17m, ensuring good capacity 
utilisation for the  group's  new  factory in the greater Bucharest 
area when it starts up this month.
Austria Following last  year's  restructuring  the  Austrian  
operations  have  achieved turnaround, and earnings exceed 
expectations. The Water Conservation sector  has now won contracts  
for  its  innovative  surface  water  protection  systems  in 
northern Italy.
Capital expenditure As at 30 September 2007 capital expenditure for 
the year amounted to  E20m.  The main items were construction of a  
E9m  factory  in  Bucharest.  The  first  and second phases of  the  
project,  to  provide  capacity  for  the  Infrastructure sector, are
scheduled for commissioning in November 2007.
Investment in Hungary also amounted  to  E9m  over  the  first  three
quarters. Relocation of large pipe production from the Csepel site to
the  south  Budapest works  will  significantly  improve  efficiency.
The  move  is  scheduled   for completion by the end of November.
Most of the E2m  invested  in  Austria  was  devoted  to  relocating 
plant  and equipment in the first half of 2007 following a plant 
closure.
Order backlog Third quarter order intake of E42m lifted order backlog
to E41.5m as of the end of the third quarter, compared to E30.9m a 
year earlier. This marks a reversal of the decline in order backlog 
seen in the first half.
In 2008 large-scale EU funding programmes  such  as  the  SOP  in  
Romania,  and strong demand for the Infrastructure sector's  products
is  expected  to  bring excellent order bookings.
Balance sheet The  heavy  investment  programme  swelled  non-current
assets  to  E71.7m  (30 September 2006: E51.1m), while inventory 
growth raised current assets to  E46.5m (30 September 2006: E44.8m). 
Total assets rose by 24% to E118.5m  (30  September 2006: E95.9m). 
Financial liabilities climbed from E51.1m to E67.9m due to borrowing 
to  finance expansion. The improved profit was reflected in a 25% 
increase  in  equity  from E21.6m to E26.8m.
Share price performance The decline in SW Umwelttechnik's share price
from its high of E139 in May  2007 to its current  level  of  around 
E100  reflects  a  combination  of  unsettled financial markets and 
the fact that earnings have fallen short of  expectations.
Thanks to SW Umwelttechnik's clear  strategy  of  targeting  growth  
markets  in Central and Southeastern Europe, and its rapid expansion 
driven by a very  heavy investment program in 2007, the share price 
is nevertheless more  than  150%  up on the start of the year.
Outlook As reported, management sees earnings for 2007  to  remain  
at  about  the  same level as 2006. This is chiefly  due  to  the  
sharp  decline  in  public  sector contract awards in Hungary and 
Romania during the first half.
. Austria: the turnaround  has  been  successfully  completed  and  capacity
      utilisation is very  high  at  all  sites  thanks  to  the  stable  market
      situation.
    . Hungary: SW Umwelttechnik's unchallenged market and  cost  leadership  has
      largely  cushioned  the  effects  of  weak  public  sector  demand.  Large
      contracts  for  sewerage  schemes  and  wastewater  treatment  plants  are
      expected to revive in 2008.
    .  Romania:  High  orders  of  products  for   industrial   and   commercial
      construction projects will underpin good  capacity  utilisation  when  the
      Bucharest plant starts up. Capacity utilisation in Timisoara  is  expected
      to rise sharply from mid-2008, as by then the SOP project funding will  be
      feeding through.
Management's forecast of stronger earnings in 2008 remains in place 
due  to  the record investment programme implemented in  2007  and  
the  marked  increase  in order intake in Romania.
Changes on the Management Board Heinz Wolschner will retire from the 
Management Board at the  end  of  2007.  In accordance with the 
corporate governance rules, he  will  not  immediately  move over to 
the Supervisory Board, despite the fact that this has been  approved 
by the Annual General Meeting. For the next three years he  will  
oversee  property acquisitions and disposals, focusing  on  the  
500,000  square  metres  of  land surplus to  operational  
requirements  that  the  group  holds  in  Hungary  and Romania.
Klaus Einfalt has been appointed to the Management  Board  of  SW  
Umwelttechnik Stoiser & Wolschner  AG  with  effect  from  January  
2008.  Klaus  Einfalt,  an industrial building engineer,  has  played
a  leading  role  in  expanding  the group's Hungarian operations, 
working his way up from  production  assistant  to plant manager and 
finally CEO. He has lived with  his  family  in  Budapest  for nine 
years. He is the first member of the fifth  generation  of  the  
family  to join the top management.
|Financial     |     |         |
|highlights    |     |         |
|              |     |         |
|Q3 2007       |     |         |
|              |     |         |
|EUR m         |2007 |2006     |
|Revenue       |27.0 |34.3     |
|EBIT          |2.2  |3.7      |
|EBITDA        |3.5  |4.9      |
|POA           |0.3  |4.2      |
|              |     |         |
|Q1-Q3 2007    |     |         |
|              |     |         |
|EUR m         |2007 |2006     |
|Revenue       |68.5 |70.5     |
|EBIT          |2.0  |2.5      |
|EBITDA        |5.6  |5.7      |
|POA           |0.6  |-0.1     |
Founded in 1910, SW Umweltechnik remains a family business, though it
has  been listed  on  the  Vienna  Stock  Exchange  since  1997.  The
company  is  widely identified with sustainable  enterprise  and  
rapid  expansion  in  Central  and Southeastern  Europe.  Its  
innovative  environmental  technology  products  are contributing  to
infrastructure  renewal  in  CSE   countries.   In   2006   SW 
Umwelttechnik employed a total of 836 people at 16 sites and posted  
revenue  of E102m.
end of announcement                               euro adhoc 07.11.2007 08:03:57

Further inquiry note:

Dr. Bernd Wolschner
Member of the Management Board
Tel: +43 (0)7259 31350
Mobile: +43 (0)664 3413953
Fax: +43 (0)463 37667

Romed Lackner
Investor Relations Officer
Tel: +43 (0)664 8117670
Fax: +43 (0)463 37667170
E-mail: romed.lackner@sw-umwelttechnik.com

Website: www.sw-umwelttechnik.com

Branche: Technology
ISIN: AT0000808209
WKN: 910497
Index: WBI
Börsen: Börse Berlin / free trade
Börse Frankfurt / free trade
Wiener Börse AG / Regulated free trade

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