Strabag losses continue

Austrian contractor Strabag posted a continued downward trend in its financial results for 2012, with its half-year output volume down 2% to €6 billion.

Consolidated group revenue for the first half amounted to €5.7 billion, down 4% in comparison to the same period in 2011.

EBITDA (earnings before interest, taxes, depreciation and amortization) was also down significantly from €197 million in 2011 to €16 million in the first half of 2012.

This drop included a €43 million compensation expense related to the failed acquisition of Cemex activities in Hungary and Austria. EBIT pushed into negative territory at a loss of €166 million.

On a positive note, Strabag reported a 2% gain in order backlog for the period, at €15.1 billion, compared to figures at the end of June 2011.

Hans Peter Haselsteiner, CEO of Strabag, said, "If we want to manage the future, we will have to create the best possible conditions for doing so. Things will certainly become more difficult than we have been accustomed to.

"The challenge will be to position the group in such a way that we have the decisive competitive advantage, that we belong to the ones who prosper - this is what I see as my task."

Strabag announced a revised outlook for the full year 2012 in July, stating that the target of €300 million for 2012 was "more than ambitious". The company is now forecasting it will achieve about two thirds of this target.