Wienerberger raises 2020 profit forecast on pent-up demand for bricks
Reuters
Published Aug 12, 2020 07:04
VIENNA (Reuters) - Austrian brickmaker Wienerberger (VI:WBSV) raised its full-year core profit forecast on Wednesday as pent-up demand following lockdowns in many of its markets boosted earnings in July and the second quarter.
The group, which operates across Europe and North America, now expects 2020 adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to reach 480 million to 500 million euros ($563 million to $586 million), compared with previously expected 460 million to 480 million euros. Adjusted EBITDA was at 587 million euros last year.
"Mainland Europe, the UK and the USA urgently need investment in infrastructure, residential construction and renovation," said Chief Executive Officer Heimo Scheuch.
"The economic stimulus programs adopted to overcome the COVID-19 crisis and the Green Deal of the European Union will create new momentum in our markets."
Wienerberger said its cash position increased to 414 million euros as of end-June, from 129 million euros at the end of 2019.
Last month Wienerberger reported a 17% drop in second-quarter EBITDA to 150 million euros on sales that fell 12% to 847 million euros.
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Written By: Reuters
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