Westag & Getalit : Press release - April 30, 2018

Westag & Getalit AG generated sales revenues of € 60.9 million in the first quarter of 2018. This represented a moderate improvement by 2.0% compared to the previous year's € 59.7 million. The company's export business showed a particularly positive trend in the first three months of 2018. Sales revenues outside Germany increased by 9.1% to € 14.4 million (previous year: € 13.2 million). Consequently, the export share climbed from 22.1% to 23.7%.

At € 32.1 million, sales revenues in the Doors/Frames Division remained almost unchanged compared to the prior year period (€ 32.3 million). The Surfaces/Elements Division increased its revenues from € 25.7 million to € 27.2 million. Sales revenues in the Central Division stood at € 1.6 million (previous year: € 1.7 million).

Earnings before taxes amounted to € 2.4 million in the first quarter of 2018 (previous year: € 2.3 million). Earnings after taxes rose to € 1.7 million in the first three months (previous year: € 1.5 million). Earnings per share stood at € 0.29 for the ordinary shares (previous year: € 0.26) and at € 0.35 for the preference shares (previous year: € 0.32).

Capital expenditures

The company plans to invest roughly € 16 million in 2018, with the main focus placed on expanding the capacity of the Doors/Frames Division. This comprises, in particular, the completion of the multi-year investment in the frames finishing line. The additionally planned investments in the Surfaces/Elements Division are aimed at optimising operational processes and the existing technical equipment to keep the two plants at a high technological level.

Employees

As at March 31, 2018 Westag & Getalit AG's headcount remained unchanged compared to the prior year reporting date and amounted to 1,294.

Outlook

Based on the forecasts for the German construction sector, the Management Board generally expects a positive market environment for 2018. This optimistic assumption is also based on the ongoing expansion of the distribution activities in the Surfaces/Elements Division. As the export markets remain difficult to assess, it is not easy to issue a precise forecast for the company's performance abroad. On balance, however, the fact that the product portfolios are precisely tailored to the individual markets makes the Management Board optimistic that the company will be able to further expand its export activities assuming a benign economic environment.

In view of the strategic measures already initiated and positive industry forecasts, management is optimistic about the future. The Management Board thus confirms its forecast for 2018 under the conditions set out in the Annual Report for 2017 and aims for a moderate increase in sales revenues and disproportionately higher improvement in earnings compared to the previous year.

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