Operating result ahead of last year despite harsh winter
Zwolle, 28 April 2010 – Wavin, Europe’s leading supplier of plastic pipe systems and solutions, today gives an update on its trading performance in Q1.
Summary
• Q1 revenue EUR 245 million, 2% below Q1 2009 , like-for-like 5% down
• Harsh winter has estimated negative effect on revenue of EUR 15-20 million
• Q1 Ebitda EUR 8.3 million, up EUR 1.2 million compared to Q1 2009
• Cost savings contributed to improved Q1 Ebitda margin of 3.4% (Q1 2009: 2.8%)

Markets and performance
Wavin’s Q1 2010 revenue decreased 2% to EUR 245 million compared to Q1 2009. Adjusted for currency effects, revenue decline amounted to 5%. The strong winter conditions across Europe significantly hampered
construction activity. The number of workable construction days in all regions turned out considerably below the previous year. Especially Wavin’s below-ground activities were affected by these circumstances. The company estimates the winter effect on Q1 revenue at EUR 15-20 million. Order intake from mid-March onwards, after weather improved, confirms this view.

Although there were clear signs of markets bottoming out, trading conditions in Q1 remained challenging. The picture varied per country. Increasing signs of recovery were noticeable in the UK, France and Turkey. Most other European markets were stable, with the exception of the Netherlands, Denmark and Italy where conditions still weakened.
The cost reduction programmes of previous years continue to have their effect. Despite lower revenue and increasing raw material prices, Ebitda over the first three months was EUR 8.3 million, up EUR 1.2 million compared to Q1 2009. Wavin has a seasonable business pattern with lowest sales and margins in the first quarter. Compared to Q1 2009, Ebitda margin in the first quarter improved with 60 bps to 3.4%.

Outlook
The construction industry is by its nature late cyclical and the company expects timing and pace of a recovery to differ per country. Wavin foresees raw material prices to further increase as a result of increasing oil prices
and the global supply and demand situation. The company has a history of passing these prices on, albeit it with a time lag.
Wavin sees an encouraging order intake and will realise additional EUR 7 million benefits of cost reduction measures taken in 2009. Wavin is confident that, barring unforeseen events, it will realise a 2010 net profit
significantly ahead of last year.

Financial Calendar 2010
17 August Publication of H1 figures 2010
28 October Trading Update Q3

reactie XEA.nl
Zal er een minder harde winter was geweest dan hadden er nog betere cijfers naar buiten gekomen.
De nieuwe man ten Hove kwam ons in de AVA sterk over.