Ballast Nedam Trading Update First Quarter 2011By Ballast Nedam Nv, PRNE
Thursday, April 28, 2011
Stable Order Book, Results on Target, Forecast for 2011 Unchanged
NIEUWEGEIN, The Netherlands, April 29, 2011 - Situation in the first quarter of 2011
Ballast Nedam has got off to a solid start this year. Not only have we
introduced a cluster structure with the aim of improving Ballast Nedam's
capacity to provide integrated solutions, but we have also achieved sound
Already we have seen the first favourable examples of improved
application of the knowledge, experience and capacities available in various
business units in the tender phase of a project. All this has been taking
place in a market that shows an unchanged profile of intensive competition
and depressed price levels for both property and infrastructure. In the
coming months we do not expect this market picture to change. This only makes
it more important that Ballast Nedam should focus on integrated projects and
niche markets such as industrial construction, hospitals, offshore wind
turbines and alternative fuels.
In these challenging market conditions, Ballast Nedam has been able to
maintain an order book of EUR1.8 billion. The rapid sale of two property
development projects with a total of 129 houses in Vleuten and the takeover
of construction firm Heddes made a positive contribution to this achievement.
Heddes Bouw & Ontwikkeling recently reached agreement with the municipal
authorities in Hoorn on continuing the building of De Kreek, a
multifunctional accommodation project consisting of a primary school, a
library, a community centre, a sports hall and a play room for pre-school
The turnover and results achieved in the first quarter were approximately
in line with those achieved in the first quarter of 2010. This puts Ballast
Nedam firmly on track to meet the results forecasts for 2011.
The major projects in both infrastructure and building & development
booked encouraging results, while the results of the regional companies
suffered to a certain extent. The major projects were mainly to be found in
the niche markets of industrial construction, hospitals and offshore wind
turbines. The performance of the specialized companies lived up to our
expectations. Within supplies, the contribution made by the raw materials
companies was good and the results of the prefab companies continued to be
adversely affected by a shrinking market.
The need for operating capital is greater during the year than at the end
of the year. This explains why the net financing position fell by EUR96
million in the first quarter to EUR326 million. This included the sum of
EUR48 million in net cash.
Forecast remains unchanged for 2011
The Board of Management is maintaining its March 2011 forecast for an
operating result of EUR15 million to EUR20 million. The expected turnover has
been adjusted upwards slightly, holding steady at approximately EUR1.4
billion, due to the contribution of Heddes Bouw & Ontwikkeling.
The outcome of claims on a number of projects, together with possible
appeal rulings in old competition proceedings, may have an effect on the
result in the rest of the year.
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. Ballast Nedam
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.
Note for the editorial staff: Further details can be obtained from Ballast Nedam N.V., Adrie van, Kessel, telephone +31-30-285-41-61 or +31-6-22-45-71-85
Tags: April 29, Ballast Nedam NV, Netherlands, Nieuwegein, The Netherlands