SW Umwelttechnik Stoiser & Wolschner AG : SW Umwelttechnik: Announcing the annual result 2012

09.04.13

SW Umwelttechnik: Announcing the annual result 2012

Category: Company results, Press releases

• Turnover of 62 million Euro generated

• Turnaround of a positive net income achieved

• Adjustment to the challenging market environment

The listed family company SW Umwelttechnik, which focuses on the development of infrastructure in CEE, generated a turnover of € 62.1 m in 2012 (2011: € 69.4 m). The operating income was increased compared to the previous year and the profit/loss on ordinary activities turned back into the plus. We achieved this because of our careful product selection, adjusting our fixed costs and keeping them variable according to the market situation as well as the stabilization of the exchange rate.

Due to the continuously challenging market environment in all markets we work in, we had to accept a decrease in turnover in 2012 to € 62.1 m. The cause for this was the cutback in the construction sector in nearly all European markets; in Hungary it even reflected a double-digit amount. However, as we actively introduced cost optimization measures, we were able to achieve a positive result. EBIT was further improved and amounts to € 1.9 m (2011: € 1.6 m) and EBITDA also increased from € 5.4 m in 2011 to € 5.7 m in 2012. The stabilization of the FX exchange rate also resulted in an improved financial result and we were thus able to turn our profit/loss on ordinary activities back into black, from € - 4.3 m in 2011 to € 0.3 m in 2012 (an increase of € 4.6 m).

Segmental analysis

The further decrease of construction activities in Hungary was especially noticeable. Hungary, however, still holds the biggest share of turnover with 40 % (2011: 42 %) even though the market environment remains so challenging. Austria's share of turnover amounts to 27 % and Romania holds 24 % - both figures are almost the same as in the previous year. We intensified our transnational market cultivation and therefore were able to achieve an increase in exports, which is shown under the heading "other turnover" and amounts to a share of turnover of 9 % (2011: 7 %) - our exports to Italy, Slovakia, Germany and Norway play an essential role herein.

Considering the different business segments, we had to accept a decrease in turnover in our water conservation segment from € 32.0 m to € 28.5 m - it still remains our strongest segment with a 46 % share of turnover. Our infrastructure segment, which includes construction in industry and trade, increased its share to 35 % (2011: 33 %) and now amounts to € 21.5 m compared to € 22.6 m in 2011. We had to put up with a strong decrease in turnover during the first half of 2012 within our project engineering segment due to the delays in financing especially in Hungary; this segment now amounts to 19 % (2011: 21 %) and achieved a turnover of € 12.1 m (2011: € 14.8 m). The increased release of EU subsidies in Romania and Hungary has led to higher contracting in the second half of 2012 and we were thus able to note excellent order receipts in the fourth quarter within our project engineering segment, the resulting turnover will only be realized in 2013 and 2014.

Fourth quarter

The fourth quarter follows the road 2012 had already been on - turnover decreased to € 17.4 (2011: € 19.7 m), yet at the same time we were able to improve our earnings - EBIT remained on the same level with € 1.1 m and EBITDA increased to € 2.1 m (2011: € 1.9 m). Our profit/loss on ordinary activities was increased to € 0.2 m (2011: € - 1.0 m).

Incoming orders

Our order entries amount to € 34.8 m (2011: € 28.2 m). The increase is a result of the many orders received in the fourth quarter in Hungary and Romania from EU subsidized wastewater and drinking water projects. In contrast we received fewer orders from the infrastructure sector, due to the further decline in investments from industry and trade clients.

Financial statement

OMS Romania srl was consolidated retroactively into SW Umwelttechnik as of 1st of January 2012. We also sold our shares of Iso Span Baustoffwerk GmbH retroactively as of 1st of January 2012 and increased our shares of the SW Umwelttechnik Österreich GmbH to 100%.

SW Umwelttechnik's total assets increased to € 100.9 m from € 96.3 m in 2011. This rise results from our increased activities in the fourth quarter 2012 into our project engineering segment as well as our increased exports to Italy, with longer payment targets. Fixed assets decreased slightly to € 65.9 m from € 66.7 m in 2011.

Equity capital increased slightly to € 7.3 m (2011: € 7.1 m), whereas our equity ratio is a little lower and now amounts to 7.3 % (2011: 7.4 %). Not considering non-cash-affecting book losses from revaluating effects in our fixed assets (price as per 31 December 2007), equity capital amounts to € 17.2 m and our equity ratio to 15.5 %.

We were able to decrease our liabilities to € 75.8 m (2011: € 77.5 m).

Investments

Our investments in 2012 only involved normal investments such as general maintenance and smaller investments into capacity and productivity improvements and amounted to € 1.7 m in 2012 (2011: € 1.7 m). We made no investments into expansions or acquisitions in 2012. The low maintenance investments reflect the longevity of our machinery.

Employees

In 2012 SW Umwelttechnik employed 501 members of staff on average (2011: 540 employees).

Outlook

Visibility in our markets remains low and SW Umwelttechnik will continue to flexibly adapt to the changes in the economic development.

We expect turnover to remain constant in Austria, mainly due to product innovations, optimizing costs and also by importing from our lower cost production sites in Hungary.

We foresee a clear increase in turnover for our project engineering segment in Hungary and Romania due to the many order receipts for EU subsidized infrastructure projects already received during the second half year 2012.

We see a slight recovery of all market segments in Romania. Market research institutes foresee an especial increase in construction activities in civil engineering projects, which could also positively affect our company.

We do not see any major changes occurring in Hungary - civil engineering projects are meant to increase and industrial construction further decrease. Our company has adapted to this forecast and we have thus adjusted our product portfolio and we will increase our activities in the civil engineering sector.

SW Umwelttechnik has adjusted to the market environment and we have set our goal on improving our 2013 results.

Fact box

In € m	2012	2011	change
Turnover	62.1	69.4	-11 %
EBIT	1.9	1.6	+19 %
EBITDA	5.7	5.4	+5 %
Financial result	-1.6	-5.9	-
Result before tax	0.3	-4.3	-
Result after tax	0.1	-4.3	-

SW Umwelttechnik, a family firm founded in 1910 and listed on the Viennese stock exchange since 1997, stands for sustainable management and consistent growth in Eastern and South-eastern Europe.  With our innovative technology to protect the environment we provide an important contribution to the development of necessary infrastructure in Central and South-eastern Europe.

For further enquiries:

Dr. Bernd Wolschner
Managing Director

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Michaela Werbitsch (MMag.)
Investor Relations

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Website:        www.sw-umwelttechnik.com