Cold weather hits Heijmans results

Dutch contractor Heijmans said revenue in the first quarter of 2012 declined slightly in comparison to the same period in 2011, primarily due to a period of frost. It added that the residential market also deteriorated, with just 187 homes sold in the first four months of the year.

In a trading update, the company said its order book was stable at the end of March at €2.2 billion. It said it expected its underlying operating to be close to break even for the first half year and positive in second half, based on annual seasonal patterns.

Chairman of the executive board Bert van der Els said, "Due to the period of frost in February, production in 2012 was off to a slow start. There is a great deal of attention in the organisation to improving the performance in the non-residential segment after the disappointing results in the second half of last year.

"Improvements are gradually becoming evident. It is difficult this year to look ahead to the rest of the year on the basis of the first quarter. On the one hand we are satisfied with our order book and we are carrying out the plans we made for 2012 in all sectors. On the other hand, the economic situation in the Netherlands and the situation on the residential market in particular are subject to a great deal of uncertainty."

Prior year loss

The update comes after Heijmans reported a net loss of €38 million for 2011, compared to profit of €16 million in 2010, after weak results from its property development and residential building segments offset positive developments from its infrastructure division.