Stock Exchange Announcement 14.03.12
Announcement No. 2, 2012
Revaluation leads to bigger writedowns than expected and
President and CEO resigns in MT Højgaard A/S
Enclosed please find MT Højgaard A/S's press release of
Monberg & Thorsen A/S holds an ownership interest of 46 % in
MT Højgaard A/S.
Yours faithfully, Monberg & Thorsen A/S
Questions relating to this announcement should be directed to
Jørgen Nicolajsen, President and
CEO, on telephone +45 3546 8000.
This announcement is available in Danish and English. In case
of discrepancies, the Danish version shall prevail.
CVR No. 12 61 79 17
Press release 14 March 2012
Revaluation leads to bigger writedowns than expected
- President and CEO resigns
In connection with the review of the MT Højgaard Group's
projects a revaluation of the risk factors for a number of
projects has been performed. This revaluation necessitates
further exceptional provisions for the financial year
In consequence of the revaluation, the Group's financial
performance for 2011 shows a loss with a pre-tax margin of
-3.6% compared with a previously expected pre-tax margin in
the region of 0 to -1%. Please see MT Højgaard's annual
report for 2011 to be released later today.
The provisions are primarily related to projects in the
business area Civil Engineering, which includes the
Group's civil engineering competencies in the field of
bridges, harbour and marine works as well as foundations for
offshore wind farms. The provisions mainly concern finished
projects and related potential obligations, including claims
made as a result of disputes concerning liability for defects
on projects in the offshore area - the so-called grout
problem. The management is of the opinion that the Group
generally has a strong legal case, but that there is always a
certain risk included with the process of such cases. In
addition, there is an increased need for further provisions,
including for the previously mentioned Panama project.
Today a mutual agreement has been made that the Group's
President and CEO Kristian May resigns.
Jørgen Nicolajsen has been appointed new acting President and
CEO. He is deputy chairman of the Group's board of
directors. Furthermore Chief Operating Officer Jens Nyhus has
been appointed COO with responsibility for MT Højgaard's
business areas Construction and Civil Engineering.
Subsequently, the management of MT Højgaard consists of
acting President and CEO Jørgen Nicolajsen, Chief Operating
Officer, COO Jens Nyhus, Chief Operating Officer Thorbjørn N.
Rasmussen and Chief Financial Officer Flemming Steen.
The board of directors has decided to initiate a thorough
process to find MT Højgaard's future
President and CEO. Internal as well as external candidates
will be considered.
A separate stock exchange listing of MT Højgaard will not be
completed until the Group's earnings capacity has been
Helge Israelsen Jørgen Nicolajsen Chairman Acting President
and CEO Tel.: +45 4520 1503 Tel.: +45 2270 9263