Ballast Nedam Trading Update For The Third Quarter Of 2013: Disappointing Third-Quarter Operations
NIEUWEGEIN, The Netherlands, October 25, 2013 /PRNewswire/ --
- Ongoing reorganization affects approximately 250 jobs
- Stable order book of € 1 630 million
- Revised forecast for 2013: operational loss
Construction and infrastructure markets were under sustained pressure. As a consequence, competition and price pressure have continued to increase. We expect this situation to persist for some time.
The third-quarter results were disappointing. Unfavourable results were achieved on a major project and several regional infrastructure projects. These had started before the restructuring of the regional infrastructure companies concerned that was set in motion at the end of last year. The risk profile has also increased because of uncertainty surrounding substantial additional work on a major project. There were also substantial losses at two specialized companies.
The regional construction companies, the specialized companies and the head office will be further reorganized in the fourth quarter, with the loss of some 250 jobs, and a reorganization expense of approximately € 7 million. Management changes have been made in the regional construction companies and specialized companies.The order book grew in the third quarter from € 1 567 million at half year to € 1 630 million, because of the Zaanstad Penitentiary PPP project, the E and F piers at Schiphol Amsterdam Airport, the development of (Y)ours Leiden, and 157 newly built homes in Amsterdam. The Pi2 consortium, a joint undertaking of Ballast Nedam (65%) and Royal Imtech (35%), reached financial close for the Zaanstad Penitentiary PPP project. Pi2 is responsible under the DBFMO contract with the Government Buildings Agency for the design, new construction, financing, maintenance and technical facilities management for a 25-year period after the penitentiary becomes available. Financial close was also reached for the work for Schiphol Amsterdam Airport's transition to central security. Ballast Nedam is constructing an overlay on the E and F piers and a terminal extension between these.
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