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Sun June 26 2022

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Bauer predicts year-end loss

29 Oct 13 Bauer is now predicting a net loss for 2013, reflecting the impact of one-off issues including contract delays at the start of the year and difficulties on a job in Jordan.

The situation has led Bauer to reassess the forecast earnings of its equipment and construction segments and the adjusted forecast now incorporates restructuring expenditure as part of a cost-cutting programme. Due to the one-off effects, the BAUER Group now expects to make a net loss of approximately €20m (£17m). The forecast for total group revenues remain unchanged at around €1.5bn.

The earnings forecast for the Jordan project has had to be adjusted downwards by some €20m. Complex conditions under which the project was operated substantially increased the costs for the companies involved. Financial difficulties being experienced by Jordan have meant that no amicable settlement has yet been reached.

The group's third-quarter figures have been further impacted by reduced profit contributions from the construction segment resulting from delays on major projects at the start of the year.

Bauer’s equipment business also continues to suffer from weaker margins than last year.

The group made a net loss for the period to 30 September of more than €20m.

The cost-cutting programme includes withdrawing from a number of minor, economically challenging business divisions. Based on a sustained high level of orders in hand, still some 8% above last year's figure - Bauer Group expects performance next year to resume the trend seen in 2012.

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