Vienna  - Austrian brickmaker Wienerberger on Tuesday reported a net profit drop by 9 per cent to 30.2 million euros (46.7 million dollars) for the first quarter of 2008 but said but said strong business in eastern Europe was driving growth.

Operating profits were up by 9 per cent to 42.6 million euros compared with the same period last year, the world's largest brickmaker said. Earnings before interest, taxes, amortization and depreciation (EBITDA) increased by 10 per cent to 92.3 million euros.

Group revenues increased by 13 per cent to 574 million euros.

Wienerberger's profits were driven by the strong pace of business activity in the CEE region, which accounts for about one-third of the turnover, in particular solid demand in Poland, Slovakia, Bulgaria and Russia.

Expansion in the region was to continue, CEO Wolfgang Reithofer said in a press statement.

The good performance in north-west European market was affected by higher costs in Germany.

Markets in the United States and Britain were weaker than expected, Wienerberger said, adding that the downturn on the US housing market was more severe than expected.

Revenues in North America fell by 28 per cent to 52.7 million euros, EBITDA dropped by 90 per cent to 0.7 million euros.

Looking ahead, the brickmaker expected steady and strong demand for the CEE region, but revised forecasts for Britain and expected negative effets on revenues and earnings owing to the weakness of the US residential construction market.

"We see the Anglo-American region and Germany as our major challenges for this year. Our top priority will be to counter these weak markets with active capacity management," Reithofer said. (dpa)