NIEUWEGEIN, The Netherlands, October 22, 2010 /PRNewswire-FirstCall/ -- - Results on Schedule, Forecast for 2010 Remains Unchanged - Slight Decrease in Order Book - to EUR 1.6 Billion - Operating Profit Forecast Remains at Approximately EUR 10 Million to EUR 15 Million for 2010
Situation in the third quarter of 2010
Compared to the first half--year, the third quarter showed an unchanged market picture of increased competition and depressed price levels for both property and infrastructure.
The high level of production on a number of major projects caused the order book to fall from EUR 1,684 million in mid-year to EUR 1,606 million. New projects worth approximately EUR 200 million were acquired during the third quarter. Among others, these included two extensions to water pipeline projects in Ghana - for the Ghana Water Company Limited (GWCL) and the renovation of the historic Hotel de l'Europe in Amsterdam. In 2011 and 2012, the heavy lift vessel Svanen will be used for the installation of foundations for 111 wind turbines for the Danish Anholt offshore wind farm. Also, in cooperation with a partner, a turnkey purchase agreement/contractor agreement was concluded for an office for SIDN (Foundation for Internet Domain Registration in the Netherlands) at IJsseloord 2 in Arnhem.
The Directorate-General for Public Works and Water Management of the Netherlands, Rijkswaterstaat has designated A-Lanes A15, a consortium that includes Ballast Nedam, as preferred bidder for the A15 Maasvlakte-Vaanplein PPP road project, which has a nominal project value of EUR 1.5 billion. It is anticipated that this project will be entered into the order book in the fourth quarter.
The results obtained in the third quarter were in line with our expectations. This therefore means that both the Infrastructure division and the Building and Development division are well on track to achieve the results forecast for 2010. Results up to the end of the third quarter present a picture that is unchanged from that of the first half-year. Major projects posted excellent results, the regional companies' results were adversely affected, specialized companies and raw materials companies made a good contribution to the result, property development achieved low but positive results, and the prefab companies suffered a loss.
In the third quarter, the net financing position decreased by EUR 43 million to EUR 241 million, due to an increase of EUR 30 million in long-term loans, EUR 27 million of which involved PPP projects. Net cash, which was included in the net financing position, decreased by EUR 13 million to EUR 26 million. This is in line with the prevailing view that there is a greater need for financing during the year than at the end of the year.
Forecast for 2010 unchanged
The Board of Management is maintaining its March 2010 forecast for an operating profit of EUR 10 million to EUR 15 million at a lower revenue than in 2009.
In the fourth quarter of 2010, the result could be strongly influenced by the outcome of claims on a limited number of projects and judgments in appeals against fines imposed by competition authorities.
SOURCE Ballast Nedam NV