Denmark's largest contractor changed the negative results of recent quarters to a small profit in the second quarter of 2012. The Group's revenue was 27% higher in the first half of 2012 than in the same period last year. The outlook for the year as a whole is maintained.
The MT Højgaard Group's revenue reached DKK 5.5 billion in the first half of 2012 compared with DKK 4.3 billion in the same period last year.
Operating results in the second quarter reached DKK 4 million and thus marked a turning point compared to the loss of the three previous quarters. In this year's first quarter the Group had write-downs related to the initiated restructuring and focusing of the business, and therefore the total operating results were DKK -147 million in the first half of 2012.
The restructuring proceeds as planned and is expected to improve the Group's profitability significantly as each action takes effect.
Market in recovery
The intake of new orders to Denmark's largest construction and civil engineering company reached DKK 3.8 billion in the first half of 2012. The volume of orders thus totalled more than DKK 7 billion at the end of the first six months of the year.- We are very satisfied with the quality of our new orders. With a firm focus on ensuring profitability we are very careful to select new projects which suit us. Now we can see that it is working. Market demand has also increased this year. This applies to both the public and the private sector, and we see a healthy pipeline of projects on their way from the drawing board to the tendering process, says MT Højgaard's acting President and CEO Jørgen Nicolajsen.
- The Group's entities have strong positions in the market. The customers feel confident with our quality and combination of competencies. And they trust that they have a sound collaboration partner in MT Højgaard, says Jørgen Nicolajsen.
In close competition the Group has won a number of new refurbishment orders in recent months, including the refurbishment of 1,700 dwellings in Helsingør and 544 terraced houses in Albertslund. And there are also good prospects in the first big contract in connection with the new railway line between Copenhagen and Ringsted, which Banedanmark has awarded to MT Højgaard.
Expecting a better financial performance
For the year 2012 the Group still expects a revenue at the same level as in 2011 (DKK 9.3 billion), perhaps a little higher.
The implemented actions are expected to have an effect on earnings which therefore are expected to improve gradually in the months ahead. Therefore a positive financial performance is expected in the second half of 2012.