A weaker profitability than expected on previously contracted projects together with costs for restructuring resulted in a modest pre-tax profit of DKK 3 million as well as a downward adjustment of the outlook for the year as a whole.
The revenue of the MT Højgaard Group was DKK 2.2 billion in the third quarter of the year. In total the Group had a revenue of DKK 7.7 billion in the first three quarters of 2012 compared with DKK 6.6 billion in the same period last year. That is an increase of 16%.
The quarter's pre-tax profit was DKK 3 million, which is lower than expected. Year-to-date the result is DKK -139 million primarily due to write-downs in the first quarter. Based on the above a number of initiatives have been implemented and planned which once more will make MT Højgaard a profitable company. A main point is a more careful selection of new projects and a make-up of our project portfolio which corresponds to the Group's competencies and the risk profile we want.
The restructuring proceeds as planned and is expected to improve the Group's profitability significantly as each action takes effect.
Good intake of new projects
The intake of new orders to Denmark's largest construction and civil engineering company totalled DKK 1.9 billion in the third quarter. The volume of orders thus totalled DKK 6.7 billion as of 30 September.
- Even though the market is still weak and we have become more careful with ensuring profitability in new projects, we still have a healthy intake of orders. This is a reflection of our competitive power and the trust which MT Højgaard has built up for decades, says the Group's new President and CEO Torben Biilmann, who took up his position on 1 November.
Better result expected next year
For 2012 as a whole, the Group expects a revenue which is a little bit higher than last year's level.
However, the pre-tax profit outlook has been downward adjusted from a pre-tax margin of -1% to the size of -2% as a consequence of weak profitability in some of the previously contracted projects and increased costs in connection with the ongoing restructuring.
The actions implemented to put the profitability right are expected to gradually affect earnings. However, the full effect will not be evident until 2014.