Profit from ordinary activities of DKK 35 million as expected. Substantial intake of orders in the final quarter of the year.
In 2013 the MT Højgaard Group has turned around operations and achieved a profit from ordinary activities of DKK 35 million, which meets expectations at the year's start of a small profit. The consolidated operating result (EBIT) was a profit of DKK 165 million. In comparison, the Group reported a loss of DKK 507 million in 2012. Revenue was DKK 7.4 billion, which is slightly higher than expected at the beginning of 2013.
The improvement in financial results was achieved through focused and disciplined efforts on a number of areas, including a close dialogue with customers, improved buildability on projects and the development of more efficient procedures through the increasing use of technology.
The Group continues to implement targeted initiatives to further strengthen the Group's market positions and profitability. It is the Group's goal to reach an EBIT margin of 5% by the end of 2015.
In 2014, the Group expects to generate a total operating profit of DKK 150-225 million, corresponding to an EBIT margin of 2-3%, excluding special items (old offshore dispute cases). In particular in the first six months of 2014, the financial results are likely to still be adversely affected by the execution of old projects with low profitability. The outcome of old disputes concerning offshore activities may also have an impact of this year's financial results. Most of the disputes are expected to be decided in 2014, and the first ones already within a relatively short time.
Many new contracts
In the final quarter of 2013, the MT Højgaard Group saw a substantial intake of new orders worth more than DKK 4 billion for execution in 2014 and the years to come. The year's order intake reached a total value of DKK 8.8 billion. The value of orders was DKK 7.5 billion at year-end as opposed to DKK 6 billion at the same time the year before. In addition to the current intake of orders, the Group won various large stand-alone assignments.
- The volume of orders has developed satisfactorily in 2013. It is our experience that our customers value the wide range of competences that the Group offers. That gives us something to live up to, says MT Højgaard's CEO & President Torben Biilmann.
The overall profitability, quality and risk profile of the order portfolio have been strengthened step by step through effective selection and pro-active work on project opportunities.
- We will soon have completed the old unprofitable contracts, and the profitability of the new orders is satisfactory. This is the basis for our expectations of positive trends, says Torben Biilmann who joined MT Højgaard 1½ year ago.
The expectations to the future financial trends are subject to uncertainty and risks which may cause the trends to deviate from expectations. For a description of risks and uncertainty factors, reference is made to the Group's annual report.