• Output of EUR 1,017m marks another significant rise
  • Improvement in EBT margin; negative due to seasonality
  • Continued to record high in the order backlog of EUR 6,700m
  • Positive effects in operating cash flow
  • Outlook for 2018 confirmed

Vienna, 28 May 2018 - PORR AG has had a good start to the business year 2018, with both output and orders setting new records once again. Production output of around EUR 1.0bn experienced a significant increase of 32.4%. The order backlog underwent a similarly strong rise to EUR 6.7bn. Despite the seasonally negative EBT of EUR -13m, PORR managed to improve the profit-before-tax margin against the previous year's value.

'PORR experienced powerful growth in 2017 and reached a new dimension. We have started 2018 with a following wind and full order books. Now the goal is 'growing . together',' says Karl-Heinz Strauss, CEO of PORR. 'The focus remains on consolidation and operational excellence'.

Earnings, output and orders

As is typical for the construction industry, earnings in the first quarter are traditionally negative. Earnings before taxes (EBT) amounted to EUR -13.0m, as expected. Despite this, a slight improvement in the EBT margin was achieved, standing at -1.3%. In terms of output, PORR carried through the momentum from 2017. EBITDA of EUR 20.0m was higher than the previous year's value of EUR 15.1m, an increase of 32.7%. Production output of EUR 1,017m underwent a significant rise against the previous year of 32.4%. Here Germany and Austria remained the most important markets in terms of production output, accounting for around 68%. Every business unit contributed to the growth in output. In the same period, revenue climbed by 36.8% to EUR 907.6m. The loss for the period amounted to EUR - 9.8m, while the net profit margin saw a slight improvement.

The order backlog grew to EUR 6,700m and set a new best for the company. Compared to the previous year, it increased by 21.2%. PORR is thereby concentrating on a selective acquisition policy. Numerous new large-scale projects such as the FAIR accelerator complex in Germany, the design-build tender for the 18 km-long bypass Nowe Miasto Lubawskie in Poland, the Franklin Tower in Switzerland and many other orders represent a stable foundation for the future.

Balance sheet and cash flows

As of 31 March 2018 total assets declined to around EUR 2.8bn. Net debt increased due to typical seasonality in construction to EUR 345.2m. The issue of a hybrid bond (EUR 123.5m) in the first quarter of the previous year had a contrasting effect. The equity ratio of 20.8% held steady at the level of year-end 2017. Cash flow from operating activities of EUR -165.8m was significantly better than the comparable period in 2017, improving by EUR 120.1m. The outflow of working capital was less pronounced here. In addition, cash flow from investing activities improved by EUR 67.7m due to lower cash outflows.

Outlook 2018

The positive outlook for the European construction industry remains in place for 2018. Assuming a stable economic environment and on the basis of the record order backlog, the PORR Executive Board expects production output for 2018 of around EUR 5bn, representing growth of around 5.5% vs. 2017. This forecast is, however, subject to a significant fluctuation range typical to the industry in light of the highly dynamic nature of the construction market.

Contact:

Karl-Heinz Strauss
CEO
PORR AG
T +43 50 626-1001
M +43 664 626-1001
comms@porr-group.com

Press Contact:

Sandra C. Bauer
Head of Corporate Communications | Corporate Spokesperson
PORR AG
T +43 50 626-3338
M +43 664 626-3338
sandra.bauer@porr.at

IR contact:

Milena Ioveva
Head of Investor Relations and Strategy
PORR AG
T +43 50 626-1763
M +43 664 626-1763
milena.ioveva@porr.at

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Porr AG published this content on 28 May 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 28 May 2018 05:42:04 UTC