SW UMWELTTECHNIK STOISER & WOLSCHNER AG 
By 23.08.11
SW Umwelttechnik: First half 2011Category: Company results, Press releases
• Revenue: Slightly regressive with –7 %• Cost structure: Adapted to the market environment
• EBIT: Improved by € + 0.5 m
• Order backlog: Increased by 6 % to € 34.9 m
• Framework agreements for mid-term financing secured
The challenging situation in our core markets Hungary and Romania is reflected in our group revenue – it amounts to € 27.8 m for the first half year 2011 and is thus € 2.2 m below that of the previous year (2010: € 30.0 m).
Due to the implemented adjustments of our fixed costs to the current market situation and the increased gross margins, EBIT has improved and now amounts to € -1.7 m (2010: € -2.1 m). EBITDA is again in the plus and amounts to € 0.5 m (2010: € 0.6 m). The stable exchange rate trend of HUF and RON, the foreign currencies relevant to SW, has lead to a financial result of € -0.5 m, which is € 2.3 m better than for the same time period in 2010 (€ -2.9 m). This also results in a significantly improved result on ordinary activities of € -2.2 m (2010: € -5.0 m).
When looking at the second quarter only, the figures of the first half year are clarified. Even though revenue decreased significantly from € 21.7 m in 2010 to € 19.2 m in 2011, our earnings have been improved. Gross margins have been further improved by 3 percentage points in the second quarter and EBIT is stable at € 0.8 m compared to the previous year. Result on ordinary activities improved to € - 0.5 m – in the second quarter 2010 it still amounted to € - 2.5 m. The relatively stable exchange rate of HUF and RON has also had a positive impact on our financial result.
Segmental analysis
In the first half year 2011, revenue is distributed to the different business segments similarly to the previous year. As the biggest sector, water conservation has a revenue share of 50 %, so € 13.9 m (2010: € 13.5 m). The difficult market environment is noticeable in the infrastructure sector where revenue now amounts to € 9.3 m (2010: € 11.6 m) and a share of 33 % (2010: 39 %). The project engineering sector has decreased slightly and now amounts to € 4.6 m (2010: € 4.9 m).
When looking at the regional allocation, Austria has improved the best and we were able to increase revenue by 27 %, which reflects revenue of € 7.1 m. This can be attributed to introducing new product lines and the improvement of the economic environment. Austria now holds a share of total revenue of 26 % (2010: 19 %).
In 2010 we were able to reach the leadership in Hungary in all our market segments. The economic development in 2011 on the one hand and the measures to ensure price stability on the other hand have led to a reduction of revenue of - 25 %, which now amounts to € 12.6 m (2010: € 16.8 m). But, because of the executed measures of adapting the fixed costs to the market environment, we were able to improve our operating result compared to the previous year. The share of total revenue has therefore decreased and now amounts to 45 % (2010: 56 %).
In Romania we were able to increase production output by 10 %. Due to unit prices however, revenue decreased by 8 % to € 5.9 m (2010: € 6.4 m). Its share of total revenue therefore remains unchanged with 21 %.
Summary balance sheet
Long-term assets are reported at € 77.9 m (2010: € 75.3 m), current assets amount to € 33.7 m (2010: € 34.2 m) and are thus slightly below that of the previous year. The balance sheet total therefore amounts to € 111.6 and is slightly above that of the previous year (€ 109.5 m).
Equity capital as per June 30th 2011 amounts to € 14.6 m and is thus significantly higher than in the previous year (€ 11.8 m). This also leads to an improved equity capital ratio of 13.1 % (2010: 10.8 %). Financial liabilities now amount to € 78.0 m, which is less than in the previous year (€ 79.9 m).
Order backlog
The order backlog as of June 30th 2011 amounts to € 34.9 m and is therefore 6 % above that of the previous year (2010: € 33.0 m). We are planning on completing 87 % of this in the current year and 13 % in the following year.
Outlook
We are expecting an increased growth in the Euro zone during the second half year. Due to the volatile capital markets and the insecurities in assessing economic development in Central Eastern Europe, visibility remains low.
Austria: The implemented structural adjustments in 2010 are showing their effects. As in the first half year we are expecting a positive development of our company in the second half year as well. Our newly introduced products have already led to very good results.
Hungary: As market leader in Hungary, SW Umwelttechnik will continue to follow its strategy in stabilising prices and due to the expected increase in commissioning of EU subsidised projects we are estimating a part recovery of revenue.
Romania: We are expecting a significant improvement of our earnings in the second half year due to the reduction of freight costs and the close proximity to the important regional market in the Bucharest area resulting from our focus on EU subsidised projects and our investments into the water conservation area at our Bucharest site.
Even though we are facing difficult conditions in Hungary and Romania, we are overall expecting a significant improvement of our operative result compared to the previous year.
Profit and loss statement in € m
Q2 2011 | HY 2011 | Q2 2010 | HY 2010 | |
Revenue | 19.2 | 27.8 | 21.7 | 30.0 |
EBIT | 0.8 | -1.7 | 0.8 | -2.1 |
EBITDA | 1.8 | 0.5 | 2.1 | 0.6 |
POA | -0.5 | -2.2 | -2.5 | -5.0 |
Balance sheet in € m
HY 2011 | HY 2010 | HY 2011 incl. internal value | HY 2010 incl. internal value | |
Long-term assets | 77.9 | 75.3 | 82.9 | 87.1 |
Short-term assets | 33.7 | 34.2 | 33.7 | 34.2 |
Balance sheet total | 111.6 | 109.5 | 116.6 | 121.3 |
Equity | 14.6 | 11.8 | 19.6 | 23.6 |
Debt capital | 97.0 | 97.7 | 97.0 | 97.7 |
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 for the development of necessary infrastructure in Central and South-eastern Europe.
Notification:
The report on the third quarter can be downloaded from our website ( www.sw-umwelttechnik.com) and ordered from the company’s headquarters.
For further enquiries:
DI Dr. Bernd Wolschner+43 463 32 109 202
Member of the Management Board
Tel.
Fax +43 463 32 109 296
MMag. Michaela Werbitsch
Investor Relations
Tel. +43 664 811 76 62
Fax +43 463 32 109 296
Web:
