A note of cautious optimism can be seen at the Austrian contractor Strabag, with the release of its half year results. The company saw turnover of € 5.6 billion for the first half of 2013, a drop of 7 % from the same period for the previous year but with some of this fall coming from weather-related issues that delayed the start of construction acitivity. However the company says that the impact of the weather on its performance should be made up by the year end. Strabag is a major contractor and is Central
A note of cautious optimism can be seen at the Austrian contractor 945 Strabag, with the release of its half year results. The company saw turnover of € 5.6 billion for the first half of 2013, a drop of 7 % from the same period for the previous year but with some of this fall coming from weather-related issues that delayed the start of construction acitivity. However the company says that the impact of the weather on its performance should be made up by the year end. Strabag is a major contractor and is Central and Eastern Europe’s largest construction company. It says that it managed to improve its earnings as it did not have the one-off costs that impacted on last year’s figures. The firm also says that in view of the harsh winter in Germany, there is a lot of work to be done in the area of road maintenance and repairs here. In Poland, a large portion of its projected 2013 output volume is based on previously acquired contracts. But the company says it can see a slight improvement of the climate in the Polish construction sector for the years to come.
Weather-related issues were noted, particularly in Germany and in Poland, with an additional expected reduction of the output volume in Poland for market reasons. The consolidated group revenue amounted to € 5,159.15 million, 10% lower than for the same period in the previous year. The completion of large projects in Benelux, Poland, Canada, Romania and the Middle East, reduced the order backlog by 7% to €14 billion. This figure still places the volume of orders at a relatively high level, however, and it does not yet include several international projects that have been acquired since 30 June 2013.
Despite the lower revenue, earnings before interest, taxes, depreciation and amortisation (EBITDA) increased in the first half of 2013 from €16.14 million to €68.47 million. The previous year’s second-quarter results had been distorted by payments related to a failed acquisition. Based on the balanced business in terms of regions and segments, the company expects output volume for 2013 to remain similar 2012 at around €14 billion. While the firm sees another slight worsening of the business environment in the European construction sector in 2013, and an intensified competition on the price as a result, it also believes that larger negative nonrecurring items will not impact the result to the same degree as in 2012. The company continues to expect the group’s EBIT to grow to at least €260 million in the 2013 financial year.
Weather-related issues were noted, particularly in Germany and in Poland, with an additional expected reduction of the output volume in Poland for market reasons. The consolidated group revenue amounted to € 5,159.15 million, 10% lower than for the same period in the previous year. The completion of large projects in Benelux, Poland, Canada, Romania and the Middle East, reduced the order backlog by 7% to €14 billion. This figure still places the volume of orders at a relatively high level, however, and it does not yet include several international projects that have been acquired since 30 June 2013.
Despite the lower revenue, earnings before interest, taxes, depreciation and amortisation (EBITDA) increased in the first half of 2013 from €16.14 million to €68.47 million. The previous year’s second-quarter results had been distorted by payments related to a failed acquisition. Based on the balanced business in terms of regions and segments, the company expects output volume for 2013 to remain similar 2012 at around €14 billion. While the firm sees another slight worsening of the business environment in the European construction sector in 2013, and an intensified competition on the price as a result, it also believes that larger negative nonrecurring items will not impact the result to the same degree as in 2012. The company continues to expect the group’s EBIT to grow to at least €260 million in the 2013 financial year.
