(Reuters) -Building materials supplier Geberit reported a nearly 5% increase in its first-quarter sales on Tuesday and said it expects conditions in the European construction sector to 'stabilise' in
Geberit Sales Up; European Construction Stabilization by 2025
(Reuters) -Building materials supplier Geberit reported a nearly 5% increase in its first-quarter sales on Tuesday and said it expects conditions in the European construction sector to 'stabilise' in 2025, despite an uncertain market environment.
Geberit, a maker of toilets, bathroom ceramics and piping, reported sales of 878.5 million Swiss francs ($1.07 billion) for the quarter, up 4.9% from a year earlier and above analysts' expectations of 869 million francs, according to a poll by newswire AWP.
Measured in local currencies, Geberit's first-quarter sales rose 5.3% year-on-year.
The company reported a core profit (EBITDA) of 276.9 million Swiss francs for the quarter, a 0.7% increase from a year earlier, but slightly below the 280 million francs expected in the AWP analyst poll.
After adjusting for currency effects, Geberit's core profit rose 1.5%, compared with the same period last year.
Geberit's results, with its products widely used in both new construction and renovation projects, offer a snapshot of the broader construction sector's health.
Geberit maintained its practice of not providing detailed full-year outlook but said it anticipated no changes to the forecast shared with its full-year results in March.
"While Europe is confronted with muted growth prospects, the additional U.S. tariffs that have been announced could have a negative impact on economic development in the USA and on the global economy," the company said, adding that global economy would thus be exposed to significant uncertainties in 2025.
Earlier this year, the company anticipated demand in the building construction industry 'to stabilise' in 2025 and also saw a sentiment boost from German infrastructure fund.
($1 = 0.8225 Swiss francs)
(Reporting by Anastasiia Kozlova in Gdansk; Editing by Sherry Jacob-Phillips)
