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Strabag SE posts stable operating earnings after nine months 2017 despite positive one-off last year

Published: November 30, 2017; 07:30 · (FriedlNews)

Publicly listed construction company STRABAG SE reported operating earnings that are nearly unchanged after the first nine months 2017 - despite the fact that a one-off effect in 2016 from the sale of a shareholding related to the acquisition of the minority interest in subsidiary Ed. Züblin AG, which was disclosed at that time, had resulted in an upwards distortion of the earnings figures.

Corporate news transmitted by euro adhoc with the aim of a Europewide distribution. The issuer is responsible for the content of this announcement.

* Order backlog again at high level: € 16.0 billion (+7 %)
* Outlook 2017: expected output volume raised to € 14.5 billion (previously: ≥ €
14.0 billion), EBIT margin forecast remains at ≥ 3 %

Quarterly Report

Vienna - Publicly listed construction company STRABAG SE reported operating
earnings that are nearly unchanged after the first nine months 2017 - despite
the fact that a one-off effect in 2016 from the sale of a shareholding related
to the acquisition of the minority interest in subsidiary Ed. Züblin AG, which
was disclosed at that time, had resulted in an upwards distortion of the
earnings figures. At the same time, the company raised its forecast for the
output volume in 2017 from at least EUR 14.0 billion to EUR 14.5 billion. The
EBIT margin 2017 is confirmed to be expected to reach at least 3 %.

"That we are today confirming our expectations for the full year 2017 is not a
matter of course. STRABAG is involved in some 12,000 construction projects every
year, including many large-scale and megaprojects. In carrying out our work,
several risks can arise simultaneously; at the same time, however, it is also
possible to regularly turn opportunities into earnings," comments Thomas Birtel,
CEO of STRABAG SE.

Zwtl.: Output volume and revenue

STRABAG SE generated an output volume of EUR 10.4 billion in the first nine
months of 2017 - an increase of 9 %. This upwards trend is being driven
especially by the German transportation infrastructures business and by a number
of mid-sized building construction and civil engineering projects in Austria.
Business growth can also be observed in the group's core markets of Central and
Eastern Europe. The consolidated group revenue grew slightly less strongly than
the output, gaining 5 % to EUR 9,357.28 million.

Zwtl.: Order backlog

The order backlog, at EUR 16.0 billion, again reached a very high level (+7 %
versus 30 September 2016). Contributing to this development once more were
numerous new large orders from the public sector and the industry in the group's
largest markets, namely in Germany, Austria, Poland, Hungary and Slovakia. The
group had generated about 75 % of its output volume in these countries in 2016.

Zwtl.: Financial performance

The earnings before interest, taxes, depreciation and amortisation (EBITDA)
remained stable at EUR 448.43 million after EUR 450.39 million. It should be
noted that, in the second quarter of the previous year, the results had included
earnings in the amount of EUR 27.81 million from the sale of a minority
shareholding related to the acquisition of the minority interest in subsidiary
Ed. Züblin AG that cannot be assigned to the operating business. Adjusted for
this effect, the EBITDA in the nine-month period increased by 6 %. Worth
mentioning, besides a number of effects from numerous different projects, are
the renewed negative effect on earnings from a large project in Chile and the
recognition of a receivable from a concession project in Poland.

The depreciation and amortisation were up slightly, so that the earnings before
interest and taxes (EBIT) came to rest at EUR 170.56 million for a minus of 3 %
compared to the same period of the previous year. Adjusted for the positive one-
off effect in the previous year, however, this represents a plus of 15 %.
Meanwhile, the net interest income fell from EUR -13.30 million to EUR -43.19
million. This is due to negative internal exchange rate differences of EUR -
27.33 million after positive exchange rate differences of EUR 3.74 million in
the comparison period of the previous year. The income tax level fell by 15 %,
leaving a net income of EUR 78.24 million (-25 %). The third-party share
amounted to EUR 4.45 million; in the previous year's comparison period - until
April, there had still been minority shareholdings in Stuttgart-based subsidiary
Ed. Züblin AG - this figure amounted to EUR 0.56 million.

These effects resulted in a net income after minorities of EUR 73.79 million.
With 102,600,000 outstanding shares, this corresponds to earnings per share of
EUR 0.72 after EUR 1.02 in the first nine months of the previous year.

Zwtl.: Financial position and cash flows

With EUR 10.6 billion, the balance sheet total changed only little versus 31
December 2016. This figure was influenced by the recategorization of the term of
the financial liabilities from non-current to current, in part because of the
maturity of a bond, and an increase of the trade payables. The equity ratio
remained high at 30.8 % compared to 31.5 % at the end of 2016 (30 September
2016: 30.0 %). The net cash position stood at EUR 14.62 million, decreasing - as
is seasonally usual - versus the year-end figure, but turning from the net debt
position that had existed at the end of the comparison period last year.

The cash flow from operating activities, at EUR -84.97 million, was
significantly less deep in negative territory than in the first half of the
previous year, when it had still amounted to EUR -569.94 million. This was due
above all to the increase in trade payables, which in the first half of 2016 had
been reduced due to an unusually high level of advance payments on 1 January
2016. Moreover, the nine-month period last year had been burdened with unusually
high income tax payments. The cash flow from investing activities remained
nearly unchanged at EUR -241.67 million. The higher level of investments in
property, plant and equipment was balanced out by an inflow of funds from
changes to the scope of consolidation following the sale of a project
development. The cash flow from financing activities stood at EUR -198.85
million after EUR -422.37 million in the previous year, when the figure had been
strongly influenced by the acquisition of the shares of Ed. Züblin AG.

Zwtl.: Outlook

The 2017 financial year promises a positive development of the output volume.
The Management Board of STRABAG SE expects an increase to EUR 14.5 billion (+7
%). Growth should be seen in all three operating segments - North + West, South
+ East and International + Special Divisions. STRABAG expects the EBIT margin to
reach a level of at least 3 %. The cash flow from investing activities should
reach around EUR 450 million.

Further inquiry note:
STRABAG SE
Diana Neumüller-Klein
Head of Corporate Communications & Investor Relations
Tel: +43 1 22422-1116
diana.klein@strabag.com

end of announcement euro adhoc
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Attachments with Announcement:
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http://resources.euroadhoc.com/documents/2246/5/10080632/1/STRABAG_SE_Press_Release_9M2017_Nov2017_e.pdf

issuer: STRABAG SE
Donau-City-Straße 9
A-1220 Wien
phone: +43 1 22422 -0
FAX: +43 1 22422 - 1177
mail: investor.relations@strabag.com
WWW: www.strabag.com
ISIN: AT000000STR1, AT0000A05HY9
indexes: WBI, SATX, ATX
stockmarkets: Wien
language: English

Digital press kit: http://www.ots.at/pressemappe/4106/aom

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