Mixed picture at Heijmans in persistently weak market
(Thomson Reuters ONE) -
Financial basis continuously solid
Key points
· Turnover in the months July through September slightly higher;
· Order portfolio steady and high quality. The project A4 Delft-Schiedam
won in the fourth quarter;
· Recovery housing market not yet visible: 961 houses sold up to the end
of October, compared with 1,178 in the same period of 2010.
Gerrit Witzel, chairman of the Executive Board: "The market conditions remain
difficult. Our results vary across the board, while the Infra activities in the
Netherlands and Belgium continue to perform solidly, the results at Non-
Residential Building are clearly under pressure. The execution in the division
is not yet at the desired quality level. In the coming period, we will have to
make extra efforts in Non-Residential Building. We have seen no signs of
recovery in the housing market, which is important to Heijmans. House sales
continue to lag. At the same time the Residential Building and the Technical
Services activities continue to perform well. It remains essential that we use
our solid financial position to continue to move forward even in the current
difficult market conditions."
Key developments
The organic increase in turnover in the months July through September was around
3%. The total order portfolio at the end of September was more or less unchanged
from the end of June.
Infra (Roads and Civil) continued to record positive results and acquired a
prominent integrated project with the contract for the realisation of the A4
Delft - Schiedam together with our project partners. The project has been won
based on a differentiated innovative and sustainable design. The operations
outside the Netherlands continue to perform in line with expectations. The
German subsidiary Oevermann is currently implementing the previously announced
measures to improve results.
The housing market is not showing any signs of recovery. The reduction of the
transfer tax has so far had no effect on home sales. The crisis on the financial
markets had a negative impact on consumer confidence. The market also continues
to feel the consequences of the restrictive measures on mortgage lending. In
these difficult market conditions, Heijmans is focussing on a number of
attractive market segments and regions. One example is the close cooperation
with (institutional) investors. Heijmans once again sold more than 30% of its
homes to investors in the third quarter. In the period July - October, Heijmans
sold 323 homes compared with 495 in the same period of 2010. The number of
unsold completed homes remained limited, at around 50 at the end of October. As
long as the outlook on the housing market continues to be poor, the risks
related to valuations and property holdings will increase. Given these
difficult market conditions, Residential Building continues to book good
results, while the order portfolio remains at a healthy level as well.
The prefab concrete market continues to be difficult. Persistent losses at
Bestcon require firm measures. A number of options will be reviewed. Despite the
progress we have made in terms of quality, the results in Non-Residential
Building remain under pressure. The limited margins that can be booked in the
current market leave virtually no room for setbacks, and we will have to make
additional improvements to the quality of the execution. We therefore do not
expect the Non-Residential Building sector to close this financial year with a
profit.
The developments in Technical Services are in line with expectations, with a
steady increase in activity. The order portfolio in Technical Services remained
stable, due to the acquisition of a number of projects, such as the Amstelcampus
project. In addition, Heijmans' strategy is aimed at maximising the Non-
Residential Building activities in combination with Technical Services. The
order portfolio shows a clear increase in the proportion of projects that are
tendered with this combination in mind.
Strategy update
Quality improvement remains high on the agenda. In mid-2010, Heijmans launched
the LEAN6Sigma programme. The aim of the programme is continuous improvement of
business processes. Lean6Sigma is based on quantitative insights ('measurement')
and improvement awareness in the organisation ('knowledge'). Based on this
principle, Heijmans has started a number of projects- both large and small -
across all of its activities, including various projects to realise the goal of
zero defects. One example of a LEAN6Sigma project is the 'optimisation of
engineering costs in design & construct projects in Roads and Civil. These
measures should result in improved efficiency and cost savings and are aimed at
the early introduction of expertise, central cost registration and integrated
management of engineering issues. Heijmans has further strengthened its PPE
capabilities and thus further improved the ability to participate in such
projects. Heijmans has since reached the final stages in a number of
preselection processes. In the third quarter, we also took the first steps
regarding Smart Energy and Smart Mobility.
Financial position
The net debt position as per end of September improved compared with the end of
September 2010. Heijmans' capital position remains strong with a solvency ratio
well above 30%.
Outlook
Although we are obviously less positive, Heijmans expects the whole of 2011 to
be profitably, barring unforeseen circumstances.
About Heijmans
Heijmans is a listed company combining activities related to property
development, residential building, non-residential building, technical services,
road building and civil engineering. Heijmans operates in the Netherlands,
Belgium and Germany. We create added value for our customers by focusing on
quality improvement, integrated projects, sustainability and profitability.
Heijmans realizes projects for home buyers and tenants, companies and government
entities. With approximately 8,100 employees and ? 2.7 billion in revenues in
2010, we are building the spatial skylines of tomorrow. For more information,
visitwww.heijmans.nl.
Annual results
Heijmans will present its 2011 full-year results on 1 March 2012.
________________________________________________________________________________
For more information / not for publication:
Press:
Lonneke Wijnhoven
Director of Communications
+31 73 543 52 17
lwijnhoven(at)heijmans.nl
Analysts:
Frank Heerens
Manager Investor Relations
+31 73 543 52 17
fheerens(at)heijmans.nl
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Heijmans NV via Thomson Reuters ONE
[HUG#1562722]
Unternehmensinformation / Kurzprofil:
Datum: 10.11.2011 - 07:31 Uhr
Sprache: Deutsch
News-ID 86224
Anzahl Zeichen: 7783
contact information:
Town:
Rosmalen
Kategorie:
Business News
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