Bauer AG Reports Weak First Half, Lowers 2013 Outlook
Bauer AG early this month reported revenue for the first half of 2013 up 3.3 percent over the same period last year, to $968 million (USD). The results were softer than expected, which the company attributed to delayed starts of large projects in its construction segment, among other challenges.
At the same time, company officials expressed optimism that orders in hand climbed 11.6 percent over the same period a year before, to $1.16 billion (USD). It’s a all-time high for the company.
"The first half of the year was generally disappointing for our businesses,” said Thomas Bauer, chairman of the management board. “We had to deal with a wide range of problems and delays in all three segments. The high levels of orders in hand give us confidence for the future however. The demand for infrastructure works around the world remains enormous. All in all, we are looking to the future in positive mood, despite the fact that we will unfortunately not be able to meet out full-year targets."
Total revenues for the group of companies include the construction, equipment and resources segments. Construction revenues climbed 8.4 percent to $464 million (USD). Equipment was up 6.7 percent to $415 million. The resources segment reported revenue of $125 million (USD), a jump of 23.8 percent.
The company reported that many of the large-scale projects that slowed growth are now under way. The construction segment also reported a 9.6 percent jump in orders in hand, largely attributed to the Bauer Spezialtiefbau GmbH, as part of a joint venture, securing the Bauer Group’s biggest contract to date in Germany.
"This is a great contract for us in our home market," said Thomas Bauer, chairman of the Management Board of Bauer AG. "And it is indeed our biggest contract in Germany to date."
The project involves foundation engineering on tunnels and supports for a double-track bypass rail line linking Hanau and Natenbach in central Germany, just east of Frankfurt. Bauer's part of the contract is valued at $62.8 million (USD).
Bauer’s total adjusted revenue for all segments now stands at about $2 billion (USD), with earnings before interest and taxes at $93 million and after-tax profit about $26 million.
Bauer offers services, equipment and other products for a variety of drilling and civil engineering sectors. Founded in 1790, the company now employs more than 10,000 people worldwide. For more information, visit the company’s website.