Breaking News
FONT-SIZE Plus   Neg
Share SHARE

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.

Register
To receive FREE breaking news email alerts for Bauer Ag and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Stocks moved notably higher over the course of the trading day on Monday, extending the strong upward move seen last Friday. The gains on the day continued the recent recovery by the markets, with the Nasdaq and the S&P 500 closing higher for the third consecutive session. While Republicans have largely tried to frame the upcoming midterm elections as a referendum on President Barack Obama, Sen. Ted Cruz, R-Tex., has joined the few offering guidance on what the GOP will do if it manages to retake control of the Senate. The World Health Organization (WHO) Monday declared that Nigeria is officially free of Ebola virus transmission. For the last six weeks, no new cases of the deadly virus infection has been reported in the country. The lines on the tabular situation reports, sent to WHO each day by its country office in Nigeria, have now been full of zeros for 42 days. If two incubation periods of 21 days pass
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.