Vienna - Wienerberger AG, one of the world's largest brickmakers, said Monday that a plan to shut down 27 of around 250 factories this year was under way, as the company's net income fell by 44 per cent to 133 million euros (169 million dollars) in the first three quarters.

With the construction sector declining in Western Europe and a sharp drop in housing starts in the United States, the Austrian company said it had already shut 16 of the 27 plants this summer in order to ensure liquidity and to protect its financial base.

Earnings before interest and taxes (EBIT) fell to 212 million euros in the first nine months of this year, a 25-per-cent decrease compared with the same period in 2007.

Taking into account restructuring costs for the shutdowns and the planned layoff of 1,400 employees, EBIT was down 36 per cent.

Revenues rose by 2 per cent to 1.93 billion euros, as a 10-per-cent increase in Central and Eastern Europe offset a decline of 2 per cent in Western Europe and 29 per cent in North American markets.

A spokeswoman said mostly small, old production sites would be shut down across the globe, with a focus on countries with weakening markets such as the United States, Britain and Germany.

"Eastern Europe now also shows clear signs of approaching economic weakness," said Wienerberger chief executive Werner Reithofer.

While Wienerberger has already shuttered plants in the Czech Republic, Hungary and Poland so far this year, one more factory in Hungary would be mothballed this year, the spokesperson said.

The company predicted sales volumes to grow in Poland, Bulgaria and Romania in the last months of 2008, but lower volumes were expected in Hungary, the Czech Republic and Slovakia.

Wienerberger expects its earnings before interest, taxes, depreciation and amortization (EBITDA) to decrease by up to 20 per cent this year, Reithofer said, down from 551 million euros in 2007. (dpa)