Quarterly financial statements marked by write-downs

16. May 2012

MT Højgaard delivered a loss in the first quarter after write-downs on projects and costs for restructuring. The Group's revenue rose by 16% in the first quarter of the year.

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Despite the higher revenue the MT Højgaard Group's operating results showed a loss of DKK 152 million. A negative financial performance was expected, but it was more negative than predicted. This is partly due to write-downs on projects and partly due to a restructuring within the business MT Højgaard in order to make it more focused, in the level of DKK 140 million. Meanwhile the development in the Group's subsidiaries and jointly managed entities is satisfactory.

- This performance is influenced by considerable downward adjustments on our ongoing projects, especially the two bridge projects in Sweden. Unfortunately, we must realise that the orders which were taken on in 2011 and prior to that have had a far too low contribution margin compared to the orders' complexity and risk profile, says MT Højgaard's acting president and CEO, Jørgen Nicolajsen.

Implemented actions

To improve earnings a number of actions have been implemented across the business MT Højgaard.

- In addition to the geographical focus there will also be focus on reorganising each business area and there will be great management focus on risk management. The aim is to achieve greater efficiency and economies, in order that MT Højgaard may become the well-earning contracting group which it has always been our ambition to be, says Jørgen Nicolajsen.

The consequence of these actions is several one-off costs and investments in 2012, which will not have full effect until 2013 and onwards.

Strong competencies

- We benefit from a strong position in the market. The customers feel safe with our quality and our wide palette of competencies. And they trust that they have a sound collaboration partner in MT Højgaard, says Jørgen Nicolajsen.

As an example he mentions the refurbishment of 1,700 dwellings in Helsingør for approx. DKK 500 million. A project which has just been won by the Group's subsidiary Enemærke & Petersen. The intake of new orders to Denmark's largest construction and civil engineering company totalled DKK 1.5 billion in the first quarter. The volume of orders thus totalled DKK 7.7 billion at the quarter-end.

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