Strabag first half results rise

Austrian contractor Strabag reported an 18% year-on-year increase in first half revenues to €5.9 billion after seeing strong growth in German, Polish and Scandinavian markets.

The company reached its annual break-even point in terms of earnings before interest and taxes (EBIT) during the first half - the first time this has happened in its history. EBIT stood at €16.7 million in the first half of 2011, compared to a loss of €10.4 million for the same period in 2010.

Strabag said the EBIT break-even point does not normally occur until the third quarter due to the cyclical nature of the construction business.

CEO Hans Peter Haselsteiner highlighted the fact that the first half of 2010 was overshadowed by a long winter.

"This year's weather conditions allowed us to begin building significantly earlier, which is why we are pleased to report double-digit growth of the output volume at the halfway point," he said.

The contractor's output volume rose 17% year-on-year during the first half to €6.1 billion. However, the order backlog was 6% lower at €14.9 billion - a drop that Strabag said was a result of the cancellation of projects in Libya due to the political unrest.

Strabag confirmed its full-year 2011 output volume forecast of €14 billion, rising to €14.3 billion in 2012. It said it expected EBIT to come to €320 million this year and €330 million next year.