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Good Annual Figures for Tauw in Turbulent Market


News provided by

Tauw bv

Apr 12, 2011, 08:02 ET

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DEVENTER, The Netherlands, April 12, 2011 /PRNewswire/ -- In 2010 Tauw recorded a turnover of EUR117.1 million, which is 1.2 percent less than in 2009. In that record year the consultancy and engineering company achieved its best annual figures since being established 83 years ago. In 2010, the operating result dropped by EUR1 million down to EUR3 million; profits before tax amounted to EUR2.4 million (2009: EUR3.1 million). CEO Bram de Borst says the market has changed structurally. "Tomorrow's winners will be those companies who can adapt the fastest."

In 2010 the Tauw Group recorded a considerable revenue growth in France (15%). A 4% growth in Italy led to a modestly positive result. Profitability in Germany recovered to a good level, which was also as a result of the upswing in the German economy. The profit in Belgium also improved substantially. 'Spain' recorded a loss, but recovery is expected this year.

In the Netherlands the number of municipal assignments dropped significantly since the second quarter. This was largely compensated by an increase in the volume of assignments from provinces, the RWS (Public Works Department and Water Management) and industry. The financial year showed a cautious recovery in the private sector. The total turnover in the Netherlands dropped by more than 3 percent. Profits before tax amounted to EUR2.6 million.

According to CEO Bram de Borst, the market can be considered as being structurally changed, particularly in the Netherlands: "The manner in which government authorities make their purchases is changing drastically. The purchasing organisation appears to be in charge far more often. Their focus is particularly geared towards the price rather than on the price-quality ratio. This is one of the causes of the prevailing price war in the engineering world."

De Borst thinks that the ability to rapidly adapt to the changes is the key to future success. "To respond quickly to developments in the marketplace, that's what it's all about. In the past year, influenced by the crisis, we've already enhanced our commercial strength substantially. That's why we're looking to the future with confidence."

Tauw has also been capturing a greater market share in the field of sustainability. Climate change and water safety also offer some good perspectives for the forthcoming years. Through the hydraulic and civil engineering business unit, the company is gearing itself more and more towards the (inter)national water market.

Although 2011 will still be marked by a certain degree of shrinkage in the Dutch market, Tauw envisages growth in the other countries. On balance this could lead to a reduction of about 3 percent in the turnover at group level. Due to the introduction of new business systems additional costs have to be taken into account in 2011. However, it is expected that the operational profits will remain at the same level as those in 2010.

SOURCE Tauw bv

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