Austria's top economic news - February 25

Erste Group said it had to make provisions and write-offs for above EUR2bn in 2010, down 1.2% on the year. However, the net profit rose 12.4% to EUR 1.015bn. The bank plans to pay a dividend of EUR 0.65 per share. Erste Bank's Ukrainian subsidiary booked a loss of EUR 37.5m, while that in Hungary burdened the results with almost EUR 22m.

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Austrian Airlines plans to raise the fuel surcharge for its long-haul flights by EUR 5 due to the increase in oil prices. For now no increase is planned for the European flights.
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Real estate investor Warimpex said it posted EBIT of EUR 24.4m for 2010, compared to a loss of EUR 71.8m for 2009. The net result turned to a profit of EUR 3.7m from a loss of EUR 97.3m. Sales grew 20% to EUR 102.7m. For 2011 the company sees a sales increase of 15% to 20% and EBIT rise of between EUR 10m and 14m.
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BWT raised its sales 15% to EUR 460.7m in 2010, while the EBIT rose 17.4% to EUR 31.5m. Due to higher income tax, the profit fell 1.1% to EUR 22.8m. A dividend of EUR 0.40 per share will be proposed.
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Machinery group Hirsch Servo AG said it posted an EBIT profit of EUR 0.62m for fiscal 2009/10, compared to a loss of EUR 2.19m a year earlier. The net loss was reduced to EUR 0.98m from EUR 3.3m. The company projects a turnaround for fiscal 2010/11.
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The purchaser manager index (PMI) of Bank Austria rose to 61.9 points in February 2011, reaching a new record-high. The index was boosted by expansion in production and creation of new jobs.
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Erste Group plans to return the received state aid by the end of the year, CEO Andreas Treichl said. The company plans to pay the coupon on the EUR 1.2bn sum at once.