Austria's Top Economic News - Week 30 May-5 June

Monday

Fibre producer Lenzing announced at the start of the week plans to issue up to 825,000 new shares. Its majority shareholder B&C will sell 5.49m shares on the market. Via the measures, the company aims to raise its free float to between 33% and 35% from 10% currently. Oberbank, which owns 3% in the company, said it will fully exercise its subscription rights in the move.

C.A.T. Oil AG reported on Monday a net loss of EUR 1m for the first three months of 2011, compared to a profit of EUR 1m a year earlier. The result was burdened by tax effects. Sales rose 29.4% to EUR 61m. The company confirmed its expectations for 2011.

Motorcycle producer KTM said in the evening of Monday it will raise its share capital by EUR 45,000.

Tuesday

Steel specialist Voestalpine said on Tuesday its sales grew 28.1% to EUR 10.954bn in fiscal 2010/11. The company's EBIT soared 180% to EUR 984.8m. Voestalpine expects a further considerable increase in earnings in the current fiscal year. The group plans a dividend of EUR 0.80 for 2010/11.

Builder Strabag announced an output of EUR 2.31bn for the first quarter of 2011, up 26% on the year. The operating loss decreased to EUR 145.4m from EUR 149.9m. The company raised considerably its outlook for 2011 and 2012.

Insurer Uniqa revealed its plans for a considerable capital increase and boosting of its free float for 2013. The main shareholders will be able to reduce their shareholdings to around 51% after the move. The new strategy of the company was announced by newly-appointed CEO Andreas Brandstetter.

Hirsch Servo AG reported on Tuesday sales of EUR 66.9m for the first nine months of fiscal 2010/11, up 16%. The company booked EBIT of EUR 0.34m, compared to a loss of EUR 5.89m for the same period of 2009/10.

As part of the announced plans of Lenzing to issue new shares and raise its free float, main shareholder B&C said it plans to reduce its 90% stake to 65%.

Wednesday

Unemployment in Austria continued to decrease in May, the first month after the opening of the labour market for eastern Europe. The number of unemployed fell 2.5% in annual terms, resulting in an unemployment rate of 6.1% under Austrian calculations.

On Wednesday it was announced that Jürgen Danzmayr, head of private banking at Bank Austria, will move to sister company HypoVereinsbank in Munich.

In a reaction of Germany's decision to step out of nuclear energy, Wolfgang Anzengruber, CEO of Austria's biggest utility Verbund, projected a continuing increase in electricity prices in the future. He called for an increase in energy efficiency and for keeping the prices affordable for the business.

Thursday - Ascension Day / Public Holiday in Austria

Friday

Software company Fabasoft AG said it will seek from its shareholders authorisation for increasing its capital by up to EUR 2.5m in the next five years.

On Friday Standard & Poor's kept its A credit rating on the Uniqa group and its A- on UNIQA-Versicherungen. The outlook however remains negative.

In another rating news, Moody's said it has rated the hybrid notes of OMV with Baa3 and stable outlook.
OMV, in its turn, said it has made a new oil discovery in northern Iraq.