AD ZWOLLE, Netherlands, Feb 29, 2012 (Thomson Reuters ONE via COMTEX) –
Zwolle, 29 February 2012 – Following a trading update issued 8 February 2012, Wavin today announces its Second Half Year and Full Year 2011 results.
Full Year 2011
- Revenue EUR 1.3 billion, up 7.8%; 8.3% on a like-for-like basis
- Sharp rise of raw material costs in H1 put significant pressure on margins
- Ebitda EUR 98.0 million, 5.9% below EUR 104.1 million in 2010; Ebitda margin 7.4% (2010:8.5%)
- Net profit EUR 18.0 million (2010:EUR 7.1 million)
- Net debt EUR 228 million (EUR 256 million in 2010); leverage ratio 2.4
- Growth in Second Half Year levelled off as unrest on financial markets affected construction activity
- Revenue EUR 645.8 million, up 1.3%, or 4.4% on like-for-like basis
- Ebitda EUR 52.0 million (h2 2010:EUR 56.2 million); H2 Ebitda margin 8.1% (8.8% in H2 2010)
Henk ten Hove, Wavin CEO:
“After a strong start of 2011, supported by a mild winter, we saw a gradual deterioration of market circumstances in some of our key countries. Scandinavia and Eastern Europe performed well, while results in the UK, France and Italy were disappointing. As already announced, we have taken measures to address this and will reduce total staff in 2012 with 150 FTEs, saving EUR 5 million annually at a one-off cost of EUR 3.5 million.
Good progress was made with the Wavin 2015 strategy. We expanded in Sweden and Czechia, divested continental clay and our French irrigation activities and closed our small business in Spain. We reduced net debt and have extended our financing facility until April 2015, with relaxed covenants, while margins and other conditions remained unchanged.”
We remain cautious for 2012. Sentiment differs in our key countries. While the situation in Scandinavia, Germany, Poland and Turkey looks positive, market expectations in the UK and the Netherlands are less encouraging. In 2012 we will grasp the opportunities for growth and pursue local leadership in line with the Wavin 2015 plan. Joining forces with Mexichem, should allow us to further accelerate our strategy.
Following a good start of the year – supported by a mild winter – the European construction market was adversely affected by weakening consumer confidence. This was fuelled by unrest in the financial markets, cuts in government spending and further mortgage restrictions.
There were notable differences between countries and regions. The markets in Scandinavia, Germany, Poland and Turkey were strong, whereas those in the UK, Italy, the Netherlands and Ireland remained challenging. New residential building activities recovered somewhat in most Western European countries but were weak in Eastern Europe. Residential repair, maintenance and improvement (RMI) was stable, while the non-residential markets did not show signs of recovery. Developments in the civil engineering sectors in various European countries were positive, boosted by infrastructure investments like construction for the Olympic Games in London and the European Football Championships in Poland and Ukraine.
Wavin’s performance in