In the light of continued write-downs on a major civil works project and some other projects, as well as low capacity utilisation and the effect of severance costs, MTH GROUP has lowered its earnings outlook for 2018.
The Group now expects EBIT in the range of DKK 0-50 compared with the previously announced figure of DKK 140-180 million. Revenue is expected to remain unchanged at around DKK 6.8 billion.
According to the preliminary financial figures, in the second quarter of 2018, MTH GROUP’s revenue was DKK 1.7 billion, compared with DKK 1.9 billion in the same period last year, following the lower order intake in 2017. The Group’s preliminary operating result before special items is considered unsatisfactory and is expected to be a loss of DKK 34 million in the second quarter of 2018, compared with a profit of DKK 38 million in the second quarter of 2017.
Earnings are expected to improve in the second half year as a result of increasing revenue, the effect of the capacity adjustment in MT Højgaard that has already been implemented and intensified effort relating to the Focus 2018 programme, which aims to improve competitiveness in MT Højgaard’s Danish business.
The outlook of increased revenue is supported by the fact that in the second quarter MTH GROUP grew order intake to DKK 4.0 billion, compared with DKK 1.8 billion in the same period last year. The order book grew to DKK 9.2 billion by the end of the quarter, compared with DKK 7.8 billion at the same time last year.
The interim financial report will be published as planned on 16 August 2018.
Torben Biilmann resigns as President and CEO at MTH GROUP
The Board of Directors of MT Højgaard A/S furthermore announces that Torben Biilmann will resign as President and CEO as of 16 August 2018. The process of finding a new President and CEO of MT Højgaard and MTH GROUP is under way.
Chairman of the Board of Directors at MT Højgaard A/S Søren Bjerre-Nielsen says:
- I would like to thank Torben Biilmann who, in collaboration with the other members of management and the employees, has led the Group visionary over the past six years. Torben has with commitment and insight into the industry played an important role in relation to the Group's strategic work creating greater collaboration across the construction industry with technology as the focal point.
- We must however note that the necessary improvements to MTH GROUP's operations and earnings have not materialised at the pace required by the Board. Therefore, the time has come to find a new President and CEO to take the lead in driving improvements of performance and earnings in especially the Danish business of MT Højgaard and realise the significant potential of the company.
The day-to-day management of the Group will be undertaken by the chairmanship in close collaboration with Group Management until a new President and CEO is in place.