Heijmans improves result in difficult market
(Thomson Reuters ONE) -
Heijmans reports higher profits by lower revenues
· Operating profit margin of almost 2% in the third quarter of
2010,compared to1% in the same period of last year;
· Current order portfolio virtually unchanged from order portfolio at
end of June 2010;
· 1.069 houses sold in the first nine months of 2010, compared to708
in the same period of last year;
· Strengthened integrated approach as strategic direction.
Gerrit Witzel, CEO of Heijmans says: "Despite difficult circumstances in the
Construction sector, I am fairly satisfied with the course of events. The
operatingresults showanimprovementwhilstturnoverdecreases; the order portfolio
remains at good levels. The focus on integrated approach, quality improvement
and cost control are bearing fruit. We knowhow to operate in a difficult
market."
General
Compared with the third quarter of last year, turnover in the months July-
September was down with approximately 10% to around ? 640 million. The selective
contracting policy in which margin is more important than volume is bearing
fruit. The operating result improved compared with the third quarter of last
year. Residential building activities in the Netherlands and the infrastructure
activities in the Netherlands and Belgium in particular performed well.
The order portfolio remained virtually unchanged from the order portfolio at end
June 2010. In recent months, we received new projects for a total of ? 0.6
billion. The integration of business sectors hereby clearly generates value.
This is clear from newly acquired projects such as Sanquin in Amsterdam and the
area development project Hooghkamer in Voorhout (around 400 homes). Up to the
end of September, Heijmans sold 1,069 houses, compared with 708 in the same
period of last year. Of the 385 houses sold in the third quarter, two-thirds
went directly to private individuals. The number of unsold completed houses
dropped to 63 (70 as per 30 June)). The number of unsold houses under
construction dropped to 317 as per 30 September (343 as per 30 June). The
capital tied up in land positions increased slightly.
Progress strategy
The market for area development is changing. Heijmans foresees a clear demand
for area development although the roles of government authorities, housing
corporations, investors and developers are shifting. The complexity of projects,
city centre projects in particular, is increasing. These large and complex
projects demand both creativity and realisation capability. In order to respond
to this market development effectively, Heijmans intends to combine the high
grade know-how of area development by turning Proper-Stok and the land
management of Heijmans Vastgoed into a single integrated organisation. Both
labels will remain active in the market.
In addition, Heijmans plans to organise the infra activities into two sectors:
'Wegen' (roads and road technology) and 'Civiel' (underground and location-
dependent infra). This adaptation of the organisation will create more synergies
between the various infra disciplines and create a more effective alignment with
market requirements. Both movements are in line with the strategy which focuses
on an integrated approach to complex projects and continuously optimizing the
organisation.
In order to further optimise the quality of projects and processes, Heijmans has
launched the improvement program LEAN 6 Sigma. The program's priority is the
reduction of failure costs and the aim to deliver zero defect projects.
Sustainability plays a substantial role in Heijmans' integrated approach. In
September, Heijmans Infra reached the highest level in the CO(2)performance
ladder of Prorail, which strengthens the competitive position and accelerates
the process of creating a sustainable organisation. Heijmans aims to further
reduce its CO(2)footprint by 10% this year.
Capital position
The net debt at the end of September is virtually unchanged from the end of June
of 2010. The positive general operational developments, limited investments and
tight working capital management, resulted in a stable cash flow.
Outlook
The developments in recent months reinforce our expectation that Heijmans will
close 2010 profitably.
Profile Heijmans
Heijmans is a listed company active in property development, housing
construction, utility construction, installation engineering and infrastructure.
Heijmans has operations in the Netherlands, Belgium, the United Kingdom and
Germany. We create added value for our customers by focusing on quality
improvement, integrated projects, sustainability and profitability. Heijmans
realises projects for home buyers, companies and government authorities. With
approximately 9,000 employees and a turnover of ? 1.2 billion in the first half
of 2010, we are building the spatial contours of tomorrow. For more information,
please see www.heijmans.nl.
Annual results 2010
Heijmans will present the 2010 results on 2 March 2011.
For more information please contact:
Press:
Lonneke Wijnhoven
+31 (0)73 543 52 17
lwijnhoven(at)heijmans.nl
Analysts:
Frank Heerens
+31 (0)73 543 52 17
fheerens(at)heijmans.nl
[HUG#1461343]
Press release in pdf:
http://hugin.info/130707/R/1461343/400567.pdf
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Source: Heijmans NV via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 11.11.2010 - 07:27 Uhr
Sprache: Deutsch
News-ID 48649
Anzahl Zeichen: 6679
contact information:
Town:
Rosmalen
Kategorie:
Business News
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