Westag & Getalit : Positive sales trend continues and earnings pick up sharply in first nine months of 2016 ...more

Thanks to the good economic trend in the relevant output markets, Westag & Getalit AG increased its sales revenues by 5.7% to € 118.8 million in the first half of 2016 (previous year: € 112.4 million). With effect from June 30, 2016, sales revenues and other operating income were for the first time recognised in accordance with the provisions of the Bilanzrichtlinie-Umsetzungsgesetz (BilRUG - German Accounting Directive Implementation Act). The prior year figures have been adjusted accordingly. The company's export sales rose by a disproportionate 8.6% to € 25.3 million (previous year: € 23.3 million); as a consequence, the export share climbed from 20.7% to 21.3%.

The Doors/Frames Division boosted its sales revenues by 9.9% to € 64.4 million in the first half of 2016, compared to € 58.6 million in the previous year.

At € 50.5 million, first-half sales revenues in the Surfaces/Elements Division were up by 0.6% on the previous year's € 50.2 million.

As a result of the positive revenue trend, the company's earnings also improved compared to the previous year. Earnings before income tax increased by 7.3% from € 5.1 million as at June 30, 2015 to € 5.4 million. Consequently, net income for the period rose from € 3.6 million to € 3.8 million. Net income per share amounted to € 0.68 for the ordinary shares (previous year: € 0.63) and to € 0.74 for the preference shares (previous year: € 0.69).

Capital expenditures

At this state, the company plans to make investments in the amount of roughly € 10.0 million in FY 2016. Due to the current level of utilisation, investment activity will focus on further expanding production capacity in the Doors/Frames Division. This comprises, in particular, the completion of a new frames production line, which will be taken into operation in the third quarter of 2016. Investments planned for the Surfaces/Elements Division primarily relate to the optimisation of operational processes and the existing technical equipment.

Employees

As of June 30, 2016, the company employed a total of 1,304 people, four more than at the prior year reporting date.

Outlook

After the gratifying trend in the first six months of 2016, the outlook for the coming months is generally positive. From today's point of view, the Management Board assumes that the company will continue to benefit from the good development in the German construction sector. Management also expects the relevant output markets to show a generally positive trend. This expectation is supported by the intensified distribution activities abroad and the product portfolios customised to the individual markets.

Against this background, the Management Board expects the sales trend in the year to date to continue until the end of the year. On this basis, the Management Board also believes that earnings will continue to show a positive trend.

The above press release and further information on Westag & Getalit are available on the Internet at www.westag-getalit.de.