Result January-March 2008
STRABAG SE: FIRST QUARTER 2008 IN LINE WITH EXPECTATIONS- Record order backlog of € 12.6 billion – growth of 17 % over the end of 2007 – Russia´s share € 2 billion
- Construction output volume +12 % to € 1,922.6 million in the first quarter 2008
- Forecast unchanged: construction output volume to grow by 15 % in 2008 – growth of EBIT margin by 50 basis points expected
Vienna, 30 May 2008
Construction output and Revenue
STRABAG SE was able to grow its construction output in the first quarter 2008 by 12 % over the first quarter of the previous year to € 1,922.6 million. The construction output was up in Central and Eastern Europe (€ +86 million), in the core markets Germany (€ +57 million) and Austria (€ +26 million) and in the Middle East (€ +36 million) and down in Americas (€ -25 million) and Croatia (€ -19 million). Consolidated group revenue in the first three months of the 2008 financial year amounted to € 1,762.7 million, compared to € 1,475.3 million in the same period last year (+19 %).
Order Backlog
The order backlog at 31 March 2008 showed a plus of 26 % compared to the first quarter 2007 and an increase of 17 % over the balance sheet date from the 2007 financial year. The record volume of € 12,581.5 million was due to significant increases in all segments. The segment Building Construction & Civil Engineering accounts for 56 %, Transportation Infrastructures for 26 % and Special Divisions & Concessions for 18 % of the group´s order backlog.
Financial Position, Financial Performance and Cash-flows
The limited capacity for construction in winter results in significant seasonal effects on the development of earnings and other financial figures of STRABAG SE. The first two quarters of the year typically have negative results, which is then overcompensated by results in the second half of the year. As a result of these seasonal effects, a quarterly comparison (to Q4 2007) makes little sense. Higher business volume also results in a more pronounced effect of seasonality on the earnings development, a situation which is revealed in the results of the first quarter 2008 as well.
As a result of the increased construction output compared to the first three months of the previous year, the EBIT (profit for the period before net interest income and income tax expense) stood at € -138.2 million, 14 % more deeply in negative territory. At € -62.3 million, the EBITDA (profit for the period before net interest income, income tax expense, depreciation and amortization) also stood below last year´s value of € -61.1 million. The profit for the period and the profit for the period after minorities stood at € -109.8 million and € -81.2 million, respectively. The earnings per share was € -0.71. The balance sheet total fell from € 7,740.8 million on 31 December 2007 to € 7,187.3 million, mostly due to the decline of current trade payables and current trade receivables.
Outlook
STRABAG continues to expect construction output and revenues in 2008 to grow by 15 % over the 2007 financial year. With the expansion into higher-margin countries and segments, higher margins should be possible in the EBIT and profit for the period. The order backlog of € 12.6 billion at 31 March 2008 covers more than 100 % of the planned construction output for 2008. STRABAG thus sees itself in a good position to grow its market shares in the Eastern European markets and to further consolidate its position as a market leader in Germany, Austria and Hungary.