Real estate and construction crisis is leaving its mark. This can also be seen in the half-year figures announced on Wednesday by the building materials giant Wienerberger: The Result after taxes fell from 223.5 million euros in the previous year to only around 0.5 million euros in the first six months of this year. Sales remained stable at around 2.2 billion euros.
Die Number of employees Wienerberger’s workforce has even increased from around 19,200 in the same period last year to almost 20,500 employees. Overall, however, it was not a good half-year for Wienerberger, as the Group management has to admit. “This year is a difficult year, especially in the new construction segment,” summarized CEO Heimo Scheuch on Wednesday. “For the first time, new residential construction contributed less than 50 percent to group sales,” reported Scheuch.
Wienerberger CEO Heimo Scheuch
In Deutschland and France the markets have collapsed. But also in Austria and the Benelux countries Demand is declining. The problems caused by the construction crisis have been responded to by, among other things, reducing capacity and laying off employees.
The ongoing “self-help program” aimed at increasing efficiency, which contributed 46 million euros to earnings last year, will also be continued. In view of the challenging environment, the Group is implementing a massive Savings program – Capacities will be reduced where necessary and plants will be shut down.
Russia effect
However, with the comparatively low profit, the sale of the Russian businesswhich was completed this year, on the figures. If these extraordinary effects were excluded, the result would be “150 million euros better,” as Scheuch explained.
The result for the full year 2024 was therefore revised downwards. The operating result (EBITDA) is now expected to be between 800 and 820 million euros, after previously forecasting 860 to 890 million euros. In 2025, the market is expected to pick up again and the cost reductions will take effect. Management expects the usual market levels to return in 2026.