Heijmans sees improvements

Dutch contractor Heijmans reported first half revenues of €374 million in its infrastructure division, up from €304 million during the first six months of 2010, despite tough conditions in some markets.

The infrastructure operating result increased to €16 million from €11 million in the first half of last year, driven by road building contracts such as the Nieuwegein/Everdingen A2 motorway and another contract for the A2 motorway in South Limburg, both of which are in The Netherlands.

Nevertheless, Heijman's infrastructure order book decreased year-on-year to €811 million from €931 million at the end of the first half of 2010.

Meanwhile, outside of its domestic market, Heijmans' German civil engineering business Oevermann produced "disappointing" results, dragging the division to a first-half operating loss of €3 million, compared to gains of €2 million last year.

The company described German infrastructure as a "difficult market", but nevertheless saw an increase in German revenues from €127 million during the first six months of 2010, to €152 million.

Revenues in Belgium also increased slightly year-on-year to €109 million, compared to €104 million during the same period in 2010, and the division reversed last year's €1 million operating loss to produce a €3 million operating result. The Belgium order book fell by €17 million, however, to €200 million at the end of the first half.

Chairman of Heijmans executive board Gerrit Witzel said, "Market conditions continued to be tough in the first half of this year and we assume that they will remain so for the time being. Nevertheless, we see good results in the Netherlands, especially in infrastructure and residential building.

"Property development is currently hard work for low margins, while the results in Germany were under much more pressure than expected. For Heijmans as a group the focus remains on quality, cost control and cash flow."