Heijmans confirms 2011 net loss

Dutch contractor Heijmans has confirmed its forecast net loss for 2011 of €38 million, compared to a profit of €16 million in 2010, after weak results from its property development and residential building segments offset positive developments from its infrastructure division.

The company was hit with value adjustments on its property assets totalling €43 million, together with a goodwill impairment of €10 million and restructuring costs of €9 million.

Executive board chairman Gerrit Witzel said 2011 had been a difficult year. "The housing market continued to deteriorate in the second half of the year. As announced at the end of January, in view of these developments, we decided to write down on some property assets to match with the new reality in the housing market. The development of results in non-residential building and prefab was very disappointing and we have introduced serious measures there to reverse the tide."

Nevertheless, the company's Infra division, which is currently being transformed into its roads and civil engineering business, reported positive results, including a 15% year-on-year rise in revenues to €820 million. The underlying operating result was stable year-on-year at €34 million.

Heijmans said its overall order book was stable year-on-year to €2.2 billion at the end of 2011. But the company said it expected conditions in 2012 to be "no less challenging" than last year.

It said, "External factors that will play a role include the housing market and possible further government spending cuts. Internally, we will continue to focus on working capital management, selective acceptance of projects (margin over volume) and profitability improvements."