Strabag warns on earnings

Austrian contractor Strabag said it expected to reach only about two thirds of its 2012 earnings before interest and taxes (EBIT) target for 2012 of €300 million.

The earnings warning came after CEO Hans Peter Haselsteiner said in May that the full-year forecast was looking "more than ambitious".

Strabag blamed delays from public authorities in Central and Eastern Europe in dealing with claims, especially in Poland. It also said the earnings downgrade was a result of the cautious valuation of some construction projects and the "ruinous price war" in the raw materials business.

The update comes ahead of the company's first half results, which are scheduled to be filed at the end of August. Strabag recorded a first quarter net loss of €159 million.