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
LoopUp Group, a UK-based startup that provides software technology for conference calls and remote meetings, on Wednesday became the first technology company to float shares on the London Stock Exchange since Britain's decision to leave the European Union. LoopUP raised £8.5 million by selling shares... Qatar's sovereign wealth fund has acquired a 9.9 percent stake in the company that owns the iconic Empire State Building, which was once the world's tallest building. Empire State Realty Trust, which owns the 102 storied, 1,454-foot skyscraper, said Tuesday that an affiliate of Qatar Investment Authority or QIA has acquired a 9.9 percent interest in the company through a $622 million investment. Shares of Glencore International Plc. declined around 6 percent in London trading after the Commodities trader reported Wednesday wider pre-tax loss in its first half with weak revenues, amid lower commodity prices. Attributable net loss, however, narrowed from last year.
comments powered by Disqus
Follow RTT