Press release

Dyckerhoff benefits from Growth in Eastern Europe in the First Half 2008

Group sales increased by 19 % – Outlook for fiscal year 2008 still positive

In the first half of 2008 Group sales grew by 19 % to EUR 964 million. The economic surrounding in Dyckerhoff’s markets in Western and Eastern Europe was positive. Construction activity in Germany, the Netherlands and the Eastern European countries increased in the first half of the year, while the construction industry in Luxembourg showed a cautious development. In the United States, residential construction activity continued to suffer from the real estate crisis, which caused further volume declines. All in all, grown volumes and prices of both cement and ready-mixed concrete in all regions, except USA, contributed to the sales growth.

EBITDA grew by 38 % compared to the first half of previous year, which is an increase by EUR 77 million to EUR 278 million. The main portion of the EBITDA growth Dyckerhoff achieved in Eastern Europe, but also Germany / Western Europe contributed to it.

With the decision to expand capacity at the River plant, it was decided at the same time to reduce import delieveries and, as needed, to close the clinker and cement production at the old, less profitable Independence plant in Kansas. Since cement demand in the USA is declining sharply, production at the Independence plant will be suspended in advance as of the beginning of September 2008, with this location being operated thereafter as a terminal. This is the main reason for clearly increased depreciation and amortization.

EBT grew by EUR 56 million to EUR 194 million. After deduction of the tax expenditures, net profit fort the first half is EUR 142 million, representing an increase of EUR 46 million.

«For 2008 as a whole we continue to expect a positve development, but growth will slow down in the second half of the year,» says Wolfgang Bauer, CEO of Dyckerhoff AG. «We expect a slight increase in Group sales and results.»