This is despite a downturn in the results estimate in German subsidiary Strabag AG arising from a loss-making project in Scandinavia as well as one-off costs related to the integration of acquisitions in Germany led subsidiary downwardly adjust its results estimate.
The course of business so far this year has shown notably higher results in Poland as well as internationally, where significant write-downs had dampened results the year before, said Strabag. However, it has had to accept market-dependent losses in the construction materials business as well as losses due to the low use of large equipment and machinery in waterway and railway construction.
Strabag had previously expected earnings before interest and taxes (EBIT) of €320m, corresponding to a margin on the output of 2.3 %. This would have resulted in a net income of €185m. This target remains unchanged; however, Strabag is raising its forecast for the EBIT to €340m.
The outlook for the output remains at €14bn for the full year 2011. This corresponds to an expected rise of around 10% over the previous year. The segments for building construction & civil engineering, transportation infrastructures and special divisions & concessions as well as ‘other’ are expected to contribute €5.1bn, €6.3bn, €2.5bn and €0.1bn to the output, respectively.
For 2012, Strabag remains convinced of growing at most with inflation across all markets and of raising its output to approximately €14.3bn. Strabag bases these forecasts on the assumptions that the economic framework in Europe will remain unchanged in the coming year. The financing environment for its private and industrial clients may not worsen; at the same time it does not expect a rapid recovery of the conditions or significantly higher government spending in its core markets.