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Westag & Getalit AG

EANS-Adhoc: Westag & Getalit AG
Sales and earnings rise in first half of 2010

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  ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro
  adhoc with the aim of a Europe-wide distribution. The issuer is solely
  responsible for the content of this announcement.
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28.07.2010

Following a subdued start to the year, which partly reflected the prevailing weather conditions, Westag & Getalit AG recorded a positive sales trend from March onwards. Sales for the first half of 2010 came in at EUR 103.2 million, up by a gratifying 6.2% on the previous year´s EUR 97.2 million. Export sales rose by 6.8% to EUR 20.5 million (previous year: EUR 19.2 million). The export share amounted to 19.9% in the first half of the year (previous year: 19.8%).

At EUR 5.0 million, earnings before income tax were up 17% on the previous year´s EUR 4.3 million. While the additional sales contributed to the positive profit trend, the appreciation of commodities caused by the general economic recovery weighed on the companys profitability. The prices of petrochemicals and wood-based materials, in particular, advanced clearly. Net profit per share amounted to EUR 0.62 (previous year: EUR 0.53).

Business sentiment in Germany has continued to improve in recent months. There have also been increasing signs of the sustainability of the positive trend. Nevertheless there have also been critical voices calling for caution in view of concerns over public sector finances. Positive stimulation for the construction sector, in particular, has been coming from governmental stimulation packages. Against this background, the management of Westag & Getalit AG is optimistic that the company´s positive sales trend will continue. However, this will only become visible to a limited extent in the year-on-year comparison, given that the strong recovery in the second half of 2009 provides for a challenging base to improve on. This is all the more true for the profit trend. While the direct comparison of the half-year numbers is gratifying, the full year-on-year numbers will be clearly less impressive due to the good profit levels achieved in the second half of 2009, when the cost-saving measures took full effect and commodities prices were generally depressed. Add to this the recent advance in input material prices which can only be rolled over into our product prices with a certain delay. Considering our strengths in terms of our product portfolio, our market position and our cost structure, we nevertheless anticipate reporting a good result for the full year 2010.

end of announcement                               euro adhoc
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Further inquiry note:

Felix Huisgen
Tel.: +49 (0)5242 17 5350
E-Mail: huisgen@westag-getalit.de

Branche: Building materials
ISIN: DE0007775207
WKN: 777520
Index: Prime All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Stuttgart / free trade
Düsseldorf / regulated dealing

Original content of: Westag & Getalit AG, transmitted by news aktuell

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