Wavin Has Warned That Revenue Growth in Its Fourth Quarter Will Be "Limited"

Wavin, the plastic pipe supplier, has warned that revenue growth in its fourth quarter will be “limited”, thanks to the impact of Europe’s financial market woes on the construction sector. The Netherlands-headquartered group said that despite seeing a levelling off in the cost of raw materials it expected margins to remain under pressure in the current economic and competitive climate. Announcing its third quarter figures, Wavin said total revenues rose 2% to €353m versus the same period last year, with like-for-like revenues up 4.6%. Earnings before interest, tax, depreciation and amortisation (EBITDA) in the quarter came in at €35.8m, down from €36.5m last year. The EBITDA margin was 10.1% in the third quarter, against 10.5% in the same period in 2010. Wavin said trading in Central & Eastern Europe, the Nordic countries, Turkey and Germany remained strong. However in the Netherlands, Italy and the UK market conditions were described as “challenging”. It said it had taken “additional measures” to control costs and cash across the business. In the first nine months of 2011 total revenue came in at €1,034m, up 10% compared with 2010. Like-for-like revenues rose in the first nine months of the year by 9.5%. Wavin said it will announce its annual results on 29 February next year. Source: prw.com