Wienerberger, the world's largest brickmaker and owner of Black Country-based manufacturer Baggeridge, yesterday said it expected core earnings to grow by around 10 per cent in 2008 based on a strong demand in central and eastern Europe.

The Austrian firm, which yesterday published its preliminary results for 2007, said it wanted to grow above the market average.

Yesterday's results showed that group revenues rose by 11 per cent in 2007 to £1.8 billion, with operating earnings before interest, tax, depreciation and amortisation up 17 per cent to £411 million.

Following strong growth during the first nine months of 2007, Wienerberger also saw further improvement in earnings during the fourth quarter, with an increase of three per cent in revenues to £439 million. EBITDA improved six per cent to £95 million - outperforming the record results from the comparable period last year, which were influenced by a very mild winter.

The company said that the rapid growth within eastern Europe was more than helping to offset declines in the US and central-west Europe.

In a statement yesterday, it said: "2007 was an unusually strong year. This was supported by favourable weather at the beginning of the year as well as a high pace of construction activity in large parts of Europe, especially central-east Europe.

"As a result of robust demand, the markets in this region - above all Poland, Slovakia, the Czech Republic and Romania - served as drivers for the excellent growth in earnings."

The strong performance has also been driven by an aggressive expansion policy which has seen the company swallow up brick manufacturing operations throughout Europe.

In the UK this was typified by the acquisition of Baggeridge Brick, completed last summer.

Chief executive Wolfgang Reithofer said the addition of the Sedgley firm had been crucial to Wienerberger's performance in the north-west Europe region, where revenues increased by 12 per cent to £171 million.

EBITDA fell 10 per cent to £30.2 million, mainly due to costs incurred in the French and Belgian hollow brick sector as well as the integration of Baggeridge.

"The segment exceeded the high level of earnings recorded in previous years due to the consolidation of Baggeridge and the acquisition of Korevaar in The Netherlands," said Mr Reithofer.

He said that with the integration of the Sedgley operation complete, together with that of the Dutch firm, further growth was anticipated in their markets during 2008.

In North America, despite the acquisition of manufacturer Arriscraft, the region saw a six per cent decline in revenues, directly attributable to the slump in the US housing market.

Despite this, the company said it still remained optimistic about growth in 2008.

"The operating environment in eastern Europe should remain favourable, but we anticipate further weakness in the US," said Mr Reithofer.

"I am very satisfied with our performance during the past year and I consider the solid development of Wienerberger in the recent year as a clear confirmation of our profitable growth strategy and our strong geographic portfolio, and we intend to continue this successful and dynamic expansion course in 2008," he added.

The Vienna-based firm is planning to build 25 new brick plants and six production sites for concrete pavers over the next five years.