German-based construction firm Bauer has reported a significant increase in operating profitability in its full-year 2017 financial results.
The group’s EBIT (earnings before interest and taxes) increased by 27.5%, from €70.3 million in 2016 to €89.6 million in 2017.
Earnings after taxes came to a total of €3.7 million, compared to €14.4 million in the previous year. They were said to have been negatively impacted by two non-operating effects – significant foreign currency losses and the necessary reassessment of receivables in the balance sheet as a result of a Hong Kong arbitration case.
Total group revenues grew by 14% to €1.77 billion, and sales revenues increased by 19.4% to €1.67 billion.
The group’s order intake increased by 11.1% to €1.74 billion. As a result, Bauer’s order backlog at the end of the year remained high, at €977.8 million – slightly down on the previous year, when the order backlog was just over €1 billion.
Professor Thomas Bauer, chairman of the company’s management board, said, “In 2017, we recorded above-average growth and further improved our operating profitability. This enabled us to continue the turnaround that we initiated in 2016 and is a very good foundation for the future development of the company.”
Looking specifically at Bauer’s construction segment, it was said to be benefitting from global growth in construction markets.
Bauer said there was a great need for roads, bridges, dams and power supply infrastructure, and the trend towards urbanisation brought with it an increased need for specialist foundation engineering services.
For the year ahead, Bauer expects total group revenue to come in at around €1.8 billion in 2018, with an EBIT of about €90 million. Earnings after tax are predicted to be significantly higher than in 2017.