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Wienerberger suffers massive slump in profits

Earnings after taxes fell by 85 percent to EUR 46.1 million in the first three quarters of 2024.

(Bild: APA/HERBERT NEUBAUER)

Profit after tax plummeted by 85 percent in the first three quarters of this year, from 312.5 to 46.1 million euros compared to the same period last year, as the world's largest brick manufacturer announced on Tuesday. Turnover was relatively stable at 3.39 billion euros, compared to 3.29 billion euros a year ago.

"The recovery in the new residential construction markets expected for 2024 did not materialize," the company explained. This was primarily due to slower interest rate cuts and the limited effect of government countermeasures in countries such as Austria, Germany, Belgium, France and North America.

Demand under the influence of political uncertainty and weather extremes remained subdued in the third quarter of 2024, according to the information provided. Eastern Europe and the UK/Ireland, on the other hand, showed positive demand for residential space, which "partially compensated" for declining volumes in Western Europe and the USA. 

Überblick der Wirtschaftszahlen

• Wienerberger significantly scaled back its outlook for 2024 as a whole. Operating EBITDA (earnings before interest, taxes, depreciation and amortization adjusted for the effects of disposals of non-operating assets and structural adjustments) is expected to be between EUR 750 and 770 million. In mid-August, the management had still expected between 800 and 820 million euros. In 2023, EUR 810.8 million had been achieved.

• In the first three quarters of 2024, operating EBITDA decreased from EUR 665.1 million in the same period of the previous year to EUR 601.9 million; EBITDA fell from EUR 655 million to EUR 536.7 million.

• Earnings before interest and taxes (EBIT) halved from EUR 443 million to EUR 217.6 million.

• According to Wienerberger, the Infrastructure and Renovation business areas showed a solid development.

• The number of employees increased slightly from an average of 19,087 to 20,461.