Signature Wienerberger expects that in II. interest in family homes will drop by half a year or 30 pct
Wienerberger, a large producer of fired bricks and roof tiles in the Czech Republic, expects that interest in family houses will drop by 30 percent in the second half of this year. Requests for material consumption calculations have already decreased because mortgages have become more expensive. It is a consequence of the Russian invasion of Ukraine and uncertainty about energy prices. When the state regulates gas supplies, the company will keep four to five of its strategic plants in operation, its CEO Kamil Jeřábek said today.
He expects that the take of construction materials will fall in the fall and that the demand for construction materials will decline in the second half of the year. A significant drop in fluctuating prices cannot be expected. “It’s an outlook for the second half of the year. We expect a decrease of thirty percent for family houses, apartment buildings should be finished by the end of the year. For family houses, the situation will probably change when there is some improvement in mortgages,” said Jeřábek
Due to rising interest rates, the number of newly concluded mortgages is already decreasing by leaps and bounds. Wienerberger attributed this to the fact that the number of requests for material consumption calculations decreased. “Therefore, we expect a reduced demand for the construction of family houses. The more positive outlook is in the case of renovations. Their number is increasing throughout Europe. The same is true for the construction of apartment buildings, which corresponds to the increased number of permitted projects. In the coming years, we expect its further acceleration, which could be helped by the new construction law,” said the director.
The situation on the market is also affected by the energy crisis. Energy prices are expected to continue to rise. When the government regulates the supply of gas, the company will maintain production in four to five strategic plants for the supply of the most demanded goods. The company would temporarily close the remaining plants and carry out maintenance, for which it had no space for the last year and a half.
Signature Wienerberger had a net turnover of 4.42 billion crowns last year. It grew by 20.6 cents year-on-year. Profit after taxation rose by 30.8 cents to 785 million crowns. This follows from the annual report. Last year, demand greatly exceeded production capacity, Jeřábek commented on the results for ČTK. In late 2019, Signature completed a merger with Tondach ČR, a roofing manufacturer. It is a member of the Wienerberger Group – the world’s largest brick manufacturer, listed on the stock exchange.
Source: Wienerberger and CTK
