Wienerberger shares are trading higher Wednesday as the brickmaker reporter upbeat Q1 results and further plans to streamline its business. Earnings were supported by strong demand in Eastern Europe.
Meanwhile, the company, which is the world’s largest brickmaker, said it is in talks to sell-off some assets.
By 1250 BST, Wienerberger shares were 4.84% higher at €22.96. The stock has been moving generally higher in the past four weeks of trading activity.
Wienerberger earnings details
Wienerberger’s revenues grew 2% in the first quarter of the year from a year earlier, to €675 million. The Group EBITDA, meanwhile, surged 30% to €60 million, over the same period.
The business also confirmed its full-year target was unchanged.
“After the record year of 2017, we started the new business year with a dynamic first quarter,” said Wienerberger CEO, Heimo Scheuch.
“The positive development of revenues and organic earnings clearly show that we are on a growth path. Moreover, the divestment of our Austrian concrete paver business is an important step within the framework of the planned optimizing of our portfolio,” he said.
“I am absolutely confident that we will meet our target for 2018 – adjusted EBITDA at Group level of between €450 million and €470 million”, Scheuch added.
Sales and investments
The brickmaker said that while demand was strong in some regions, it remained weaker in Germany which would lead to the shut down of some of its less efficient facilities.
The Austrian business also said it was in talks with various parties over the sale of some of its assets. It expects its ‘portfolio adjustments’ to net €100 million. ““We will sell assets from all divisions... We are in negotiations with interested parties,” Scheuch told Reuters reporters in an interview.
At the same time, the brickmaker has €200 million for acquisitions and other investments which should see the business end 2018 with more operational facilities than it had at the start of the year.