Heijmans on track in spite of difficult market conditions
(Thomson Reuters ONE) -
Improved results on lower revenues
Update on business developments
* Improved operating results by a lower revenue level under difficult market
conditions;
* Revenues and operating result negatively impacted by extended period of
freezing weather;
* Sale of homes realized by Property Development above first quarter prior
year, housing market remains uncertain;
* Order book at the end of March 2010 virtually equal to the order book as
per year-end 2009.
Gerrit Witzel, Chairman of the Heijmans Executive Board: "In spite of the
extended period of freezing weather, I am not dissatisfied with business
developments to date. The market is difficult, but our operational performance
continues to recover and the net debt position shows a favourable trend. We are
well on track."
General developments in the first months of 2010
Within the construction industry, the first months in a year are generally the
weakest months in comparison to the remaining periods, because of seasonal
patterns. This is due to cautious customer demand and dependence on weather
conditions. The extended freezing weather negatively impacted revenues as well
as the operating result in the first months of 2010. By taking effective
measures, major works generally stayed on track. The negative impact from the
weather is expected to be largely offset by higher production in the remaining
months of the year.
Revenues in the first months of 2010 in the Netherlands as well as
internationally, lagged behind revenues in the same period of 2009. Revenues in
the Netherlands declined primarily in the Property Development, Residential
Building and Infrastructure sectors. Revenues declined in Belgium and Germany,
in particular in the road building operations.
The Heijmans order book at 31 March 2010 stayed virtually the same in comparison
to the end of December 2009.
At a lower level of revenues, the operating result in the first months of 2010
clearly improved in comparison to the same period in 2009, even when the 2009
costs of the organizational restructuring in the relevant period are not taking
into consideration. Due to the measures implemented in preceding periods,
improvements are evident in the first months of 2010, in spite of the difficult
market conditions. Particularly the Netherlands Infrastructure and Building
Activities performed better. Furthermore, the improved project controls had a
favourable impact. No improvements were visible in the results of Property
Development.
Organizational restructuring
The organization has been drastically restructured in 2009 as a result of the
turnaround initiated at the end of 2008, to implement the emphasis on a policy
of margin over volume and to anticipate on lower revenue levels due to the
economic crisis. The measures taken in 2009, which to a limited extent remain to
be completed in 2010, are proceeding according to plan.
Financial position
Heijmans is focused on further reducing its net debt position. The net debt
position developed relative favourable in the first months of 2010 as well.
In terms of seasonal patterns, in the construction industry there is generally
an increase in capital requirements during the initial months of the year. This
increase in 2010 is up to now less than projected for Heijmans, in part due to
improved payment conditions and a stringent inventory policy. Furthermore,
investments are limited.
The balance sheet position of the inventory held by Heijmans Property
Development remained virtually unchanged up to this point in 2010. The number of
unsold homes under construction declined by approximately 150 in comparison to
the beginning of the year (560). The number of unsold completed homes remained
at the same level (80). The capital employed in land positions remained
virtually unchanged.
The company's solvency (year-end 2009: 27%) remained sound in the first months
of 2010.
Revenues and order book
Netherlands
Property Development continues to be severely impacted by poor housing market
conditions, although there were some signs of recovery in the first months of
2010: with 245 homes sold in the period January - March 2010 compared to
approximately 70 homes sold in the same period in 2009, there are clear
positive signals. Furthermore, a relatively higher number of homes were sold in
the higher end segment. However, there is as yet no evidence of a persistent
upward trend. For a further recovery of the housing market it is important for
consumer confidence to improve and for the economic recovery to persist.
Property Development and Residential Building revenues declined in the first
months of 2010 due to projects deferred in 2009, as well as the extended period
of freezing weather at the beginning of 2010.
The revenues realized by Road Building operations lagged behind those of the
previous year due to the freezing weather. Non-residential Building revenues
remained stable, while Technical Services revenues declined somehow.
The Heijmans order book in the Netherlands at 31 March 2010 declined slightly in
comparison to 31 December 2009. Infrastructure's order book exhibited an
increase due to lower production on the one hand and a solid inflow of new
orders on the other hand. Residential Building and Non-residential Building
reported a decline. The order intake in Property Development and Technical
Services was virtually the same as the realized production.
International
The revenues generated by foreign operations declined, partly as a consequence
of the sale of rail company Heitkamp, in the first months of 2010 in comparison
to the same period in 2009. In Belgium and Germany. The revenues of particularly
the infrastructure activities were negatively impacted by the poor weather
conditions. Revenues in the United Kingdom stayed virtually the same. The order
book in Belgium declined, while the order books in the United Kingdom and
Germany rose. The road-building order book in Germany rose, while the
Non-Residential order book remained at a depressed level.
2010 Semi-annual Figures
Heijmans will present its semi-annual results for 2010 on 23 August 2010.
For additional information:
Media:
Lonneke Wijnhoven
Director Corporate Communications
+31 73 543 54 80
lwijnhoven(at)heijmans.nl
Analysts:
Michiel Segers
Investor Relations
+31 73 543 51 90
msegers(at)heijmans.nl
[HUG#1417009]
Press release: http://hugin.info/130707/R/1417009/367530.pdf
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Datum: 19.05.2010 - 01:46 Uhr
Sprache: Deutsch
News-ID 1014916
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