With the changes, Ballast Nedam's profile is changing faster from a major player on the bleak traditional markets to a prominent player on the integrated projects market and several niche markets that have growth prospects, such as offshore wind turbines, industrial construction, secondary raw materials and alternative fuels.
Theo Bruijninckx, Ballast Nedam's CEO, comments: 'Our strategic choice in 2012 was to move where possible from the persistently poor, and strongly capacity-driven, markets. We are continuing to focus on the markets in which Ballast Nedam is able to add value in a distinctive way. These are integrated projects, the niche markets with growth prospects, such as offshore wind turbines, and the promising modular building concept. We are accelerating the change in the company's profile accordingly. With this strategic focus, less exposure to loss-making markets and the well-filled order book, we are looking forward to an operating profit for 2013 of approximately € 15 million'.
Infrastructure x EUR 1 million 2012 2011 Revenue 496 523 EBIT 10 14 Margin 2.1% 2.7% Order book 900 1 152 Assets 214 228
Volume declined in the infrastructure market, leading to cut-throat competition and greater price pressure in several strongly capacity-driven market segments. The price level in the regional public procurement market for traditional contracts collapsed to below cost. Competition also increased for the major multiyear projects and in the industrial construction niche market. The offshore wind turbines niche market remained favourable.
Infrastructure achieved a € 4 million lower profit of € 10 million, in particular because of the increased reorganization expenses. However, in general terms Infrastructure displayed a fine performance in view of last year's further deteriorated markets. Indeed, disregarding the reorganization expenses in both years, Infrastructure's profit was unchanged relative to 2011 at € 17 million. Excellent results on the major projects exceeded the regional companies' losses.