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Ash4781

Brick Firm Warns Of Profits Fall

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http://ukpress.google.com/article/ALeqM5gK...yrHl1E6TC46j3gw

Brick firm warns of profits fall

2 hours ago

The collapse in UK housebuilding activity contributed to a profits warning by the world's biggest brickmaker.

Austrian giant Wienerberger, which makes nearly 10 billion bricks a year, said its first half underlying earnings would be 10% lower than the prior year due to the global economic downturn, including in the UK.

UK revenues account for around 7% of Wienerberger's total, which came in at 2.5 billion euros (£2bn) last year. The company recently mothballed two of its 17 UK factories - Ewhurst in Surrey and Plymouth - with the loss of 80 jobs.

A mortgage famine has hit new home sales and building activity across the country. The Home Builders Federation has estimated that between 80,000 and 120,000 homes will be built this year, compared to 190,000 in 2007. The UK's major firms have announced 5,000 job cuts in the past week alone.

Wienerberger, whose UK headquarters is at Cheadle in Cheshire, expanded last year through the acquisition of brickmaker West Midlands-based Baggeridge. This year it took a majority stake in tile manufacturer Sandtoft, based in Broomfleet in Yorkshire.

Explaining the profits warning, Wienerberger also spoke of shrinking activity elsewhere in the world. The contraction in the US market was stronger than expected, it said, with a 40% drop in housing starts since the beginning of the year.

There was also "no recovery" in sight for Germany and "weaker momentum" across parts the Czech Republic and Hungary. But demand for new bricks in Russia and Poland remained high, the group said.

Wienerberger, which operates 263 plants in 26 countries, predicted a year-on-year profits decline for the full year 2008. Last year underlying profits came in at 551 million euros (£437m).

Analyst Imran Akram at broker Collins Stewart said: "The underlying market trends are likely to continue to deteriorate."

So the bricks, and the land is falling in price. :blink:

Although long term there is a shortage of bricks ;)

No brick gags, sorry :P

Edited by Ash4781

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Comes as no surprise...and not just because of the crash.

I have taken a great interest in some new houses being built in my locale - and it seems that not many real bricks are being used.

They've built a house out of chipboard, covered that in tin foil, then built a layer of breeze blocks around the outside up to about 2 metres high which is then rendered. Only from that point up to the roof are any actual bricks used.

And the scary thing was that the breeze blocks were only the size of normal bricks.

If you were building this yourself, I reckon you could get change out of £15,000 for the materials even if you bought them at B&Q.

So get yer money out of bricks and into chipboard and tinfoil...

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Brick makers could soon be diversifying.

It's a long shot, but if they would start a movement for castrating errant males ........??

In third world Britain a quick cheap job wil be the only method

Hygiene regs would dictate bricks to be used once only.

What do you think guys?

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Brick makers could soon be diversifying.

It's a long shot, but if they would start a movement for castrating errant males ........??

In third world Britain a quick cheap job wil be the only method

Hygiene regs would dictate bricks to be used once only.

What do you think guys?

how much for two hours please Laura?

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No brick gags, sorry :P

This is just the start of the bad news - there's mortar come as others go to the wall. It's hod for them at the moment. In layerman's terms they face tough competition from the BRICs.

Well I couldn't resist.... :P

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Brick makers could soon be diversifying.

It's a long shot, but if they would start a movement for castrating errant males ........??

In third world Britain a quick cheap job wil be the only method

Hygiene regs would dictate bricks to be used once only.

What do you think guys?

They say it doesn't even hurt if ya keep yer thumbs out the road. :lol:

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how much for two hours please Laura?

Hmm........I have to very very careful here.

Are you refering to this thread or my apology to you today on 'Ignore'? :unsure:

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Hmm........I have to very very careful here.

Are you refering to this thread or my apology to you today on 'Ignore'? :unsure:

WOAH!

Which spelling mishtake were you ribtickling me about?

lurve the icicle danglies from your chesticles in the apology though :lol:

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This is just the start of the bad news - there's mortar come as others go to the wall. It's hod for them at the moment. In layerman's terms they face tough competition from the BRICs.

Well I couldn't resist.... :P

Very good. Now I'll have a try ..............um.......err............no, I'm rendered speechless.

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this isn't even a joke, it just doesn't make sense, but they should diversify into Brick Sh*t Houses because they would never depreciate in value, primarily because they are small, sensibly priced, functional, and not prone to the whims of women wanting to decorate with the latest glits.

223844536_0a50191db3.jpg

actually if you google image search brick shit houses the 'other' pictures are much better:

http://images.google.co.uk/images?um=1&amp...use&spell=1

Sureley this is a BTL opportunity:

1458996185_ac15d00172.jpg

Edited by mrcutegurlzz

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  • 396 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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