Ballast Nedam is holding up in the still deteriorating market conditions and has achieved a revenue and profit approximately in line with those for the first quarter of 2011. Excellent results have been achieved on several major multiyear projects and in niche markets, while the regional infrastructure companies and property development made a disappointing loss.
Ballast Nedam’s strategy focuses on integrated projects and on the niche markets of industrial construction, hospitals, offshore wind turbines, secondary raw materials and alternative fuels.
Markets continued to deteriorate in the first quarter and to exhibit increasing competition, price pressure and number of bankruptcies. Ballast Nedam foresees no change in this picture in the near future. Besides the ongoing restructuring of the regional infrastructure companies, the capacity of several business units will also be adjusted to these market conditions.
On the other hand their installation knowledge was strengthened in the first quarter with the acquisition of T&H B.V., a highly qualified consultancy in the field of building-related installation engineering, with ten employees. This acquisition fits well with the strategy, in view of the increasingly important place occupied by installation expertise in integrated projects.
Ballast Nedam also has a stake in the relaunch of Ursem modular building systems, which is closely aligned to the existing modular products Modupark® and iQwoning®. It will put the company in a position to serve the various markets for residential and nonresidential construction, new building and renovation with modular concepts.
The order book increased from € 1 950 million at year-end 2011 to € 2 000 million. For instance, the public transport terminal in Breda was awarded by Prorail for more than € 130 million (50% Ballast Nedam) and the contract was acquired for a multifunctional Residential and Service Centre in Sassenheim for € 21 million. In addition some projects in the order book will no longer start in 2012 because of delays on the client’s side in arranging finance.
The need for working capital is greater during the year than at year-end. The net financing position consequently went down by € 108 million in the first quarter to a debt position of € 153 million, which includes net cash of € 54 million. At the end of the first quarter of 2011 the net financing position was still a debt of € 326 million.
Profit forecast unchanged for 2012
The Board of Management upholds the previously announced forecast for 2012 of an approximately equal profit on a revenue of € 1.4 billion. An operating profit of € 19 million and profit for the period of € 9 million were achieved in 2011 on a revenue of € 1 382 million.
Ballast Nedam has a leading position in construction and infrastructure. The company operates mainly in the Netherlands on integrated and other projects for companies, public authorities and housing consumers, in the fields of mobility, housing, employment, leisure and energy. Ballast Nedam operates internationally in various areas of expertise.
It supplies project, process and contract management in the development, implementation and management phases. The company also provides specialized know-how and skills, and semi-finished and finished products.
Ballast Nedam is listed on NYSE Euronext in Amsterdam. The share is included in the Amsterdam Small Cap Index.
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Offshore WIND staff, April 25, 2012; Image: Ballast Nedam