31. Mai 2012 
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Strabag announces record and loss
Today, Thursday, Strabag SE announced its figures for the first quarter 2012. As expected, the loss was higher than in last year’s first quarter; at the same time, Strabag posted a record high in the order backlog. The company confirmed its outlook on the full year.
“At the end of April, we had described our planning for the earnings before interest and taxes (EBIT) of over 300 million Euros as “more than ambitious”. The past few weeks have confirmed that we must proceed prudently regarding our assessment of the 2012 business development. I therefore repeat, how ambitious our plans are in light of the current situation: As in the 2011 financial year, the lack of infrastructure investments by the public sector in Europe will continue to have a negative impact on the Transportation Infrastructures segment. A further burden will likely be the weakened demand for construction in Poland after the European Football Championship. On the other hand, we expect to see a still solid business in the German building construction and civil engineering segment as well as improved results in niche markets”, commented Strabag SE CEO Hans Peter Haselsteiner.
Output volume and revenue
The Strabag Group’s output volume in the first quarter of 2012 fell slightly by 2 % to 2,262.54 million Euros. The largest reduction was registered in Poland due to the end of the construction boom in that country. The expansion in Scandinavia, in comparison, is beginning to bear fruit. The output volume also was up in Romania and in the RANC region (Russia and the neighbouring countries). The consolidated group revenue in the first three months of the financial year amounted to 2,192.65 million Euros, nearly stable relative to the previous year (-1 %).
Order backlog
The order backlog reached a new record high of 15,688.29 million Euros at the end of the first quarter 2012. While the high order backlog of the previous year from the large infrastructure projects in Poland was continuously worked off and transformed into output, Strabag was awarded at least two new large projects at the beginning of 2012: the Pedemontana Lombarda project to build a bypass around the city of Milan, Italy, added about 1 billion Euros to the Strabag order books, and in Germany a Strabag subsidiary was awarded the tender for a part of the works on the municipal Stuttgart 21 railway station.
Financial performance
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 a negative effect on results, which is then overcompensated by results in the second half of the year. As a result of the seasonal effects, a quarterly comparison makes little sense.
The earnings before interest, taxes, depreciation and amortisation (EBITDA) fell from -59.80 million Euros to -74.34 million Euros in the first quarter of 2012. This development was influenced in part by a stronger loss of associates resulting from the inclusion of an equity investment in a cement company in Central and Eastern Europe. The depreciation and amortisation rose by 6 % to 90.33 million Euros. The earnings before interest and taxes (EBIT) was down 13 % to -164.66 million Euros.
At -34.52 million Euros, the interest income was significantly more negative than in the previous year’s first three months (-3.21 million Euros) as this figure contained currency exchange rate differences in the amount of -31.4 million Euros compared to exchange rate gains of 3.2 million Euros in the first quarter of 2011. This led to a profit before tax of -199.18 million Euros after -148.59 million Euros the year before. Accordingly, the income tax was in positive territory with 40.04 million Euros and thus provided some relief.
Below the line, this left a 36 % higher negative – this is usual in the first quarter – profit after tax of -159.14 million Euros. The minority-interest shareholders helped bear a loss of 8.58 million Euros, resulting in a net income after minorities of -150.55 million Euros. Due to the ongoing share buyback programme, the number of weighted outstanding shares was down from 114,000,000 to 104,907,599. The result per share thus amounted to -1.44 after -1.03 in the first quarter of the previous year.
Financial position and cash-flows
The balance sheet total reached 10,079.92 million Euros, 3 % lower than at the end of 2011. The lower total results from the typical first-quarter effect of reduced current trade receivables; in this case, a particular influence was the completion of a motorway project in Denmark. The equity ratio showed little change, settling at 30.4 % after 30.3 % on 31 December 2011. The net cash position fell from 267.81 million Euros to 56.16 million Euros in response to seasonal losses and capital expenditures. The cash-flow from earnings stood at -131.26 million Euros, 68 % deeper in negative territory than in the same quarter last year. Thanks to the strong reduction of trade receivables, in particular involving the mentioned large-scale project in Denmark, the cash-flow from operating activities improved by 84 % to -47.57 million Euros.
Investments in property, plant and equipment and in intangible assets as well as enterprise acquisitions were at about the same level as in the previous year, leading to only a slight change in the cash-flow from investing activities from -119.74 million Euros in the first quarter of 2011 to -107.31 million Euros in 2012. The cash-flow from financing activities also showed no major changes: as the bank borrowings were reduced more or less by the same amount as the raising of a bonded loan, the cash-flow here stood at 19.81 million Euros after 28.42 million Euros in the first quarter the year before.
“At the end of April, we had described our planning for the earnings before interest and taxes (EBIT) of over 300 million Euros as “more than ambitious”. The past few weeks have confirmed that we must proceed prudently regarding our assessment of the 2012 business development. I therefore repeat, how ambitious our plans are in light of the current situation: As in the 2011 financial year, the lack of infrastructure investments by the public sector in Europe will continue to have a negative impact on the Transportation Infrastructures segment. A further burden will likely be the weakened demand for construction in Poland after the European Football Championship. On the other hand, we expect to see a still solid business in the German building construction and civil engineering segment as well as improved results in niche markets”, commented Strabag SE CEO Hans Peter Haselsteiner.
Output volume and revenue
The Strabag Group’s output volume in the first quarter of 2012 fell slightly by 2 % to 2,262.54 million Euros. The largest reduction was registered in Poland due to the end of the construction boom in that country. The expansion in Scandinavia, in comparison, is beginning to bear fruit. The output volume also was up in Romania and in the RANC region (Russia and the neighbouring countries). The consolidated group revenue in the first three months of the financial year amounted to 2,192.65 million Euros, nearly stable relative to the previous year (-1 %).
Order backlog
The order backlog reached a new record high of 15,688.29 million Euros at the end of the first quarter 2012. While the high order backlog of the previous year from the large infrastructure projects in Poland was continuously worked off and transformed into output, Strabag was awarded at least two new large projects at the beginning of 2012: the Pedemontana Lombarda project to build a bypass around the city of Milan, Italy, added about 1 billion Euros to the Strabag order books, and in Germany a Strabag subsidiary was awarded the tender for a part of the works on the municipal Stuttgart 21 railway station.
Financial performance
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 a negative effect on results, which is then overcompensated by results in the second half of the year. As a result of the seasonal effects, a quarterly comparison makes little sense.
The earnings before interest, taxes, depreciation and amortisation (EBITDA) fell from -59.80 million Euros to -74.34 million Euros in the first quarter of 2012. This development was influenced in part by a stronger loss of associates resulting from the inclusion of an equity investment in a cement company in Central and Eastern Europe. The depreciation and amortisation rose by 6 % to 90.33 million Euros. The earnings before interest and taxes (EBIT) was down 13 % to -164.66 million Euros.
At -34.52 million Euros, the interest income was significantly more negative than in the previous year’s first three months (-3.21 million Euros) as this figure contained currency exchange rate differences in the amount of -31.4 million Euros compared to exchange rate gains of 3.2 million Euros in the first quarter of 2011. This led to a profit before tax of -199.18 million Euros after -148.59 million Euros the year before. Accordingly, the income tax was in positive territory with 40.04 million Euros and thus provided some relief.
Below the line, this left a 36 % higher negative – this is usual in the first quarter – profit after tax of -159.14 million Euros. The minority-interest shareholders helped bear a loss of 8.58 million Euros, resulting in a net income after minorities of -150.55 million Euros. Due to the ongoing share buyback programme, the number of weighted outstanding shares was down from 114,000,000 to 104,907,599. The result per share thus amounted to -1.44 after -1.03 in the first quarter of the previous year.
Financial position and cash-flows
The balance sheet total reached 10,079.92 million Euros, 3 % lower than at the end of 2011. The lower total results from the typical first-quarter effect of reduced current trade receivables; in this case, a particular influence was the completion of a motorway project in Denmark. The equity ratio showed little change, settling at 30.4 % after 30.3 % on 31 December 2011. The net cash position fell from 267.81 million Euros to 56.16 million Euros in response to seasonal losses and capital expenditures. The cash-flow from earnings stood at -131.26 million Euros, 68 % deeper in negative territory than in the same quarter last year. Thanks to the strong reduction of trade receivables, in particular involving the mentioned large-scale project in Denmark, the cash-flow from operating activities improved by 84 % to -47.57 million Euros.
Investments in property, plant and equipment and in intangible assets as well as enterprise acquisitions were at about the same level as in the previous year, leading to only a slight change in the cash-flow from investing activities from -119.74 million Euros in the first quarter of 2011 to -107.31 million Euros in 2012. The cash-flow from financing activities also showed no major changes: as the bank borrowings were reduced more or less by the same amount as the raising of a bonded loan, the cash-flow here stood at 19.81 million Euros after 28.42 million Euros in the first quarter the year before.
