J.W. Construction Holding S.A. achieved exceptionally good results in the first quarter of 2008.
Net earnings amounted to PLN 19.1 million, which is an increase by 70% as compared to the first quarter of 2007. The Management Board keeps 2008 forecasts.

In the first quarter of 2008, J.W. Construction Holding earned PLN 119.6 million in revenues on sales, which is a 12.5% increase as compared to the same period last year. The Company has also reported an increase in gross margin by 7.6 percentage points – the margin in the first quarter amounted to 32.8%. Operating earnings grew quarter-over-quarter by 54.2% amounting to PLN 27.6 million.

“The very good results of the first quarter show that we are on the right track. Despite a significant stagnation in the housing market we have proven that the biggest companies will cope in difficult conditions. The results of the current and the remaining quarters of 2008 are primarily influenced by the investments in progress the sales of which we provided for last year. Therefore, we are practically not affected by the stagnation in the market” – explains Jerzy Zdrzałka, President of J.W. Construction Holding S.A. Management Board.

In the first quarter of 2008, gross earnings on sales grew by over 46% amounting to PLN 39.2 million. The highest share in the earnings has been attributable to the housing estates: Górczewska Park (Górczewska II), Rezydencja Quatro and Osiedle Lazurowa.

In the first quarter of 2008, J.W. Construction obtained valid building permits which allowed to commence the construction works at two investment projects in Warsaw – Wiślana Aleja and Lewandów Park I. This means that both housing estates will be included in the 2008 results, as was planned by the Company.

“Our financial results in the remaining three quarters will primarily depend on Górczewska Park, Osiedle Lazurowa and Lewandów Park. Most of the apartments in the three investment projects have already been sold and by the end of year they will have a 100 percent engagement of costs. Inclusion of the projects in the financial result will only require adequate advancement of the construction works. All the three projects already have valid building permits and the works are progressing on schedule. Therefore, we see no risks to our forecasts” – Jerzy Zdrzałka adds.

According to the forecasts announced in January, in 2008, JWCH expects to achieve net earnings of PLN 219.7 million and revenues on sales of PLN 1.085 billion.

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J.W. Construction is the largest Polish apartment developer operating mainly in Warsaw, and also in Łódź, Gdynia and abroad. The Company is the leader in the Warsaw housing market where it has been operating as developer since 1994. Except for development projects the company deals also in construction business, being the general contractor of the majority of investment projects. J.W. Construction owns and operates Hotel 500 chain including 5 hotels in Zegrze, Stryków, Tarnowo Podgórne, Cieszyn and Św. Lipka. On 4 June, 2007, the Company made its IPO on the Warsaw Stock Exchange.