Ballast Nedam Slips To Loss In FY12, Suspends Dividend; Shares Down

Ballast Nedam Posts FY12 Loss; Suspends Dividend - Quick Facts

3/8/2013 6:39 AM ET

Shares of Dutch construction and engineering firm Ballast Nedam (BLSNF.PK) fell about 7 percent Friday morning, as the firm reported a loss for fiscal 2012. At the same time, the board decided to refrain from paying a dividend for the year.

The company noted that its current dividend policy is to place 50 percent of profit for distribution as dividend. But, it has made a substantial loss in 2012, solvency deteriorated, and the difficult market conditions are expected to continue.

As a result, the board has decided to refrain from paying a dividend for 2012. Dividend for 2011 was 0.47 euros. In view of the loss incurred and loss of more than 500 jobs, no bonuses will be paid for 2012, the company added.

For the full year, the company posted a loss of 41 million euros, compared to profit of 9 million euros in the previous year. Loss per share was 4.24 euros, as against a profit of 0.93 euros per share a year ago.

Loss before income tax was 38 million euros, compared to a profit of 12 million euros in the prior year.

Operating loss was 31 million euros, following 49 million euros of reorganization expenses and impairment losses on land positions, and property, plant and equipment. In 2011, operating profit was 19 million euros.

Earnings before interest, taxes, depreciation and amortization or EBITDA, plunged to 2 million euros from 47 million euros a year earlier.

Annual revenues declined to 1.3 billion euros from 1.38 billion euros reported last year. Order book was 1.76 billion euros, down from 1.95 billion euros a year earlier.

Theo Bruijninckx, CEO of the company said, "Our strategic choice in 2012 was to move where possible from the persistently poor, and strongly capacity-driven, markets. We are continuing to focus on the markets in which Ballast Nedam is able to add value in a distinctive way."

For full-year 2013, the company expects operating profit of about 15 million euros.

In Amsterdam, Ballast Nedam shares are currently trading at 11.38 euros, down 6.95 percent.

To receive FREE breaking news email alerts for Ballast Nedam and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

More Breaking News

<<Previous 82 Articles

Editors Pick

Stocks Climbing Well Off Lows After Early Sell-Off - U.S. Commentary

While stocks moved sharply lower at the start of trading on Thursday, selling pressure waned not long after the open. The markets have subsequently seen a notable recovery attempt, as some traders look to pick up stocks at reduced levels. The major averages have climbed well off their worst levels but are currently still posting modest losses.

U.S. New Home Sales Rise 2.3% In April, Coming In Well Above Estimates

In another upbeat sign for the U.S. housing market, the Commerce Department released a report on Thursday showing that new home sales came in well above economist estimates in the month of April. The report showed that new home sales climbed 2.3 percent to a seasonally adjusted annual rate of 454,000 in April from the revised March rate of 444,000.

Eurozone Consumer Confidence Improves For Sixth Month

Consumer sentiment in the euro area increased for the sixth consecutive month in May to its strongest level since the middle of last year, preliminary data from the European Commission showed Thursday. The DG ECFIN flash estimate of the consumer confidence indicator for Eurozone came in at -21.9,...