[ad_1]
Austrian construction giant Strabag had to accept drops in production and profits in the first half of the year, but expects higher construction production for the rest of the year than in the same period last year given a record backlog of orders. . Above all, foreign markets such as Germany and Poland with fewer crown restrictions than Austria performed well this year.
In June, production fell 10 percent to 6.72 billion euros, for the year as a whole it should now be 15 billion euros instead of the 14.4 billion euros previously forecast, Strabag SE said on Monday. However, last year it was a total of 16.6 billion euros. Sales fell 9 percent to 6.32 billion euros this year in June.
The decrease in production in the semester was due to temporary construction stoppages in the crown crisis in Austria (where 15 percent of the Group’s production is provided), the expiration of a contract with a major German customer and the completion of tunnel construction projects in Chile. Construction sites in Austria stood up for ten days and then gradually started again.
The group increased its year-on-year order book by 6 percent to a record 19.44 billion euros. According to Strabag, the order book has grown significantly in Germany and the Czech Republic, and in Great Britain there were significant new orders and order extensions in the construction of tunnels. On the contrary, there were decreases in the Americas region, in Hungary and in Austria, because large orders were processed here.
The results were under pressure. Earnings before interest, taxes, depreciation and amortization (EBITDA) of 300.1 million euros remained at the level of the previous year (+2 percent). However, higher depreciation and amortization due to higher investments in the prior year reduced earnings before interest and taxes (EBIT) by 26 percent, from € 61.0 million to € 45.1 million. This decrease is due to the development of the International segment + Special Divisions, it is said. The profit before tax (EBT) was 31.6 (41.5) million euros.
The EBIT margin, which was 0.7 (0.9) percent in the first half of the year and 3.8 percent in 2019 as a whole, should be “at least 3.5 percent” this year. According to CEO Thomas Birtel, the production and margin forecast is based on the fact that, unlike the first half of the year, there will not be, even temporarily, the cessation of the entire construction operation in one of the core countries by Strabag. But that doesn’t mean a “second wave” will catch you off guard. Because one thing is clear: “It is not a short-term ghost and an easy return to normalcy before March 2020.”
The group’s result, which generally tended to be below zero in the first half of the year, was in positive territory from last year to June at 10.7 million euros; this year it fell slightly in the red with -0.8 million euros. For each of the 102.6 million shares outstanding, this corresponded to -0.01 (+0.10) euros. More recently, the securities were quoted at 26.25 euros.
The equity ratio grew year over year from 29.9 to 31.7 percent; at the end of 2019 it was 31.5 percent. The net cash position fell “as usual in the season” from 1,144 million at the end of 2019 to 946.5 million; in mid-2019 it was 240.6 million euros. Cash flow from commercial activities, which was clearly negative a year ago, now stands at € 32.8 million.
The number of employees in the group decreased by three percent to 74,093 (76,638) year-over-year, due to the discontinuation of the long-term property and facilities services contract in Germany and a project-related staff reduction in the Middle East. (off / red)
