Vienna - Austrian brickmaker Wienerberger on Thursday predicted a 10 per cent drop in half-year earnings before interest, taxes, depreciation and amortization (EBITDA), down from 256.6 million euros (402.6 million dollars) in the first half of 2007. 

Year-on-year earnings for 2008 would also decline, the world's largest brick producer said in its preliminary statement on half-year results. 

The spread of the housing slump from the United States to Britain was the main reason for lower earnings and revenues, the company said. 

Although revenue grew by three per cent in first half of 2008, up from 1.27 billion euros in the same period last year, it fell by four per cent in the second quarter. 

Some smaller and unprofitable plants would be shut down sooner than originally planned, the statement said. A spokesperson declined to name the affected production sites, but said the focus would be on the United States and Britain. 

Wienerberger did not release final first-half results on Thursday. A spokesperson said profit and operating profit data would be announced on August 19. 

From April, new housing construction in Britain slumped. In Germany, "there is still no recovery in sight," Wienerberger said. In the US, there was a drop of 40 per cent in started housing projects since the beginning of 2008. 

"Against the backdrop of higher inflation, rising interest rates and a growing credit shortage, further weakness can be expected on markets across Europe," the brickmaker said. 

Revenue in Central Eastern Europe continued to grow, albeit at a slower rate in the Czech Republic, Slovakia and Hungary. (dpa)