Adds details, background in paragraphs 4-8
ZURICH, March 13 (Reuters) – Geberit GEBN.S on Wednesday reported full year profit below expectations as the Swiss plumbing materials supplier weathered a much weaker construction industry in Europe.
Core operating profit (EBITDA) rose 1.4% to 921 million Swiss francs ($1.05 billion), said the company, whose bathroom ceramics and piping are used in new build and refurbishment projects.
The result was slightly below forecasts, with analysts at Bank Vontobel expecting EBITDA at 927 million francs, while Zuercher Kantonalbank had forecast a figure of 928 million francs.
Net profit fell 13% to 617 million francs from 706 million a year earlier, missing forecasts for 630 million francs.
The company said the decline was mainly due to a positive one-off tax effect in the previous year.
Geberit, whose products also include shower toilets, had previously highlighted “an extraordinarily difficult” market when it announced a 9.1% drop in full-year sales in January.
“An extremely difficult year is behind Geberit Group,” the company said on Wednesday.
“Volumes were significantly lower due to the declining building construction industry in Europe and the high volume level in the prior year,” it said.
($1 = 0.8775 Swiss francs)
(Reporting by John Revill; editing by Bartosz Dabrowski)
((John.Revill@thomsonreuters.com; +41 41 528 36 37; Reuters Messaging: john.revill.thomsonreuters.com@reuters.net))
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