Heijmans on track: Results improved; balance sheet strengthened
(Thomson Reuters ONE) - Update on business developments * Positive underlying operating result; * Revenues lower, but healthier; * Slight increase in order book with improved margins; * Property Development continues to stagnate; * Balance Sheet strengthened: increased equity, lower debt level; * Organizational downsizing proceeding more rapidly than planned; * Strategic restructuring on track; * Sale of Heitkamp; positive transaction result and a good step towards further debt reduction.Rob van Gelder, Chairman of the Heijmans Executive Board: "We arewell on track; the downsizing is proceeding more rapidly than plannedand we make progress on the reduction of debt. The company isprogressively doing better. Stagnation of the housing market is stillaffecting us adversely."General developmentsThe underlying operating result exhibited a positive trend over thepast few months. The underlying operating margin amounts toapproximately 1% of revenues in the months of July, August andSeptember. Performance during the past few months considerableimproved compared with the same period in 2008. This is largely explained by the fact that the Dutch Building Activities and theprojects in Belgium that were highly unprofitable in 2008, made onbalance a positive contribution to the result over the past fewmonths.Compared with the same period in 2008, the level of Heijmans'revenues in the Netherlands in the last few months is lower due tothe selective contracting policy and the slowdown in the housingmarket. Revenues generated by international activities over the lastfew months are slightly higher than the same period in 2008.The Heijmans order book at 30 September 2009 rose slightly incomparison to the end of June 2009. Due to a selective contractingpolicy, the quality level of the order book in terms of gross marginis good.Streamlining the organizationOver the past few months, the Heijmans organization has been furtheradjusted and has consequently become more responsive. At the end ofthe third quarter, the number of FTEs in the Netherlands on balancedeclined by approximately 1,000 in comparison to one year ago.Current projections call for a decline of approximately 1,300 FTEs asper the end of the first quarter of 2010. The program effects allbusiness areas.Revenues and order bookNetherlandsProperty Development continues to be severely impacted by poorhousing market conditions. While a somewhat increased movement in thehousing market is perceptible, the revenues from and the sale of newhomes in the last few months continues to lag behind 2008 levels. Inthe first 10 months of this year, exclusive of dissolutions,approximately 1,000 homes were sold, versus approximately 2,150 homesfor the entire year 2008. Compared with prior years, a relativelyhigher number of homes were sold in the somewhat lower marketsegment.The revenues of Residential Building, Non-residential Building andInfrastructure declined over the past few months in comparison to thesame period in 2008, partly as a result of the stricter policy ofpursuing margin over volume. Technical Services revenues remained ata good level.The Heijmans order book in the Netherlands at 30 September 2009 roseslightly in comparison to its status at the end of June 2009. TheProperty Development order book declined due to the deferral ofresidential building projects. The order book rose in other sectors.The order book for Non-residential Building and Technical Services at30 September 2009 rose in comparison to 30 June 2009 in part due tothe umbrella contract for the realization of the Vredenburg MusicCentre in Utrecht valued at ?81 million. With respect to theInfrastructure order book; the ?87.5 million Prorail contract for thesubstructure of the track doubling project between Utrecht-Lunettenand Houten, as well as the approximately ?50 million contract withthe Directorate-General for Public Works and Water Management for thewidening of the A50 Valburg - Grijsoord motorway, contributedsignificantly to the increase.Foreign OperationsThe revenues generated by foreign operations rose over the last fewmonths in comparison to the same period in 2008. Revenues in theUnited Kingdom and Belgium declined. Revenues in Germany rose overthe last few months. The three subsidiaries Heitkamp, Oevermann andFranki all contributed to this increase.The order book in these three countries as per the end of September2009 is slightly higher compared with 30 June 2009. In Belgium, theAntwerp Master Plan Brabo I Project was acquired in July 2009. ThisPPP contract with a total construction value of ?124 million,approximately half of which is for the account of HeijmansInfrastructure Belgium, comprises elements such as tramlineextensions and the rehabilitation of roads.Underlying operating resultThe underlying operating result over the past few months showed apositive trend. The underlying operating margin amounts toapproximately 1% of revenues in the months of July, August andSeptember. Technical Services and Infrastructure made a significantcontribution in this regard. The other sectors in the Netherlandsrealized an underlying operating result around the breakeven pointduring these three months. The United Kingdom, Belgium and Germanyeach made a positive contribution to the operating result.Leadbitter's performance during the past few months was once againstrong.Capital and FinancingHeijmans is focused on the structural reduction of debt and on thecreation of a more solid ('deleveraged') capital structure. Therights issue has been completed last July and the net proceeds wereused to strengthen the balance sheet.Agreement was reached on 2 November 2009 concerning the takeover byEiffage Travaux Publics SAS of all shares in the railway constructioncompany Heitkamp Rail GmbH and Heijmans Rail B.V. The transaction,resulting in a limited book gain, represents an important steptowards further debt reduction.Efforts to reduce the capital requirements of Dutch propertydevelopment operations are progressing laboriously. Aside fromfinancial parties, housing corporations and municipalities are alsoreticent to participate as risk-bearing partners. In spite of thedifficult economic conditions, Heijmans has taken constructive stepsin strengthening the balance sheet, resulting in increased equity andless debt.Reverse stock splitDue to the reverse stock split completed on 5 October 2009, thenumber of shares and depositary receipts for shares was reduced from168,508,088 to 16,850,809.2009 Annual FiguresHeijmans will present its 2009 annual results on 25 March 2010.For additional information:Media and Analysts:Michiel SegersDirector of Investor Relations & Corporate Communications+31 73 543 51 90msegers(at)heijmans.nlhttp://hugin.info/130707/R/1354474/328459.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 12.11.2009 - 07:45 Uhr
Sprache: Deutsch
News-ID 8260
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