logo
Share SHARE
FONT-SIZE Plus   Neg

Bauer 2011 Profit Declines - Update

Bauer AG (BRAGF.PK) reported Friday a decline in profit for full year 2011, reflecting mainly poor performance in its construction segment, and proposed a lower dividend for the year. The German construction and machinery manufacturer said it expects the first quarter to show a loss, which will be balanced out over the subsequent quarters. It also anticipates to achieve annual growth of between five and ten percent over the next two financial years.

In addition, a 22 percent rise in Group orders in hand provides a sound foundation for the growth planned over the coming years, the company stated.

Bauer noted that political unrest in the Middle East, environmental disaster and nuclear accident in Japan, the return of financial crisis, and the problems on major projects negatively impacted its performance.

According to the company, Construction segment was the most severely impacted, by political and economic turbulence, but it sees a general major backlog in demand for construction works internationally.

Thomas Bauer, chairman of the management board stated, "The Group's broad international spread and the long-term strategic plan underpinning our products and services have enabled us to cope well with external disturbances."

For the full year, the company's net profit declined 14.3 percent to 34.1 million euros from 39.8 million euros in the previous year. On a per share basis, earnings dropped 8.8 percent to 1.86 euros from 2.04 euros per share a year ago.

EBIT, or earnings before interest and taxes, declined to 82.3 million euros from 88.4 million euros a year earlier.

Revenues for the year grew 5.2 percent to 1.37 billion euros from 1.3 billion euros in the preceding year. Construction segment revenues fell 5.4 percent to 582.1 million euros.

The company noted that its orders in hand improved 22 percent to 750 million euros.

For 2012, Bauer expects net profit of about 35 million euros and EBIT of around 85 million euros. The company anticipates revenues of 1.45 billion euros for the year.

In addition, the board has proposed a dividend of 0.50 euros per share, down from 0.60 euros paid last year.

Bauer is currently trading at 20.4 euros, up 0.63 euros or 3.19 percent on Frankfurt's Xetra.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
British lender Lloyds Banking Group Plc. Friday reported higher profit in its first half, benefited by increased net interest income and margin as well as lower impairment. Looking ahead, the company lifted its net interest margin forecast. Amgen reported an increase in second-quarter profit, driven by sales of arthritis drug Enbrel and osteoporosis treatments Xgeva and Prolia, and improved margins. Both earnings and sales topped Wall Street estimates. Electronic Arts Inc. (EA) on Thursday reported an increase in profit for the first quarter, reflecting continued strong digital revenues, with both earnings and revenues topping Wall Street estimates. However, shares of the company fell over 4 percent, after having detailed a weak outlook. Redwood...
comments powered by Disqus
Follow RTT