STRABAG SE Annual Report 2009
STRABAG SE: Figures for the 2009 Financial year- Targets reached: Revenue € 12.6 billion (+3 %), EBITDA € 684 million (+6 %), EBIT € 283 million (+5 %)
- Earnings per share at € 1.42 (+3 %) – Management Board proposes a dividend of € 0.50 per share
- Outlook 2010 confirmed: Stable output volume and margins
Vienna, 30 April 2010 STRABAG SE reached its targets and the analysts’ expectations in2009: The consolidated group revenue stood at € 12,551.93 million, which corresponds to a plus of 3 %. Despite a series of provisions, the earnings before interest, taxes, depreciation and amortization (EBITDA) grew by 6 % to € 684.25 million and the EBITDA margin climbed from 5.3 % to 5.5 %.
The earnings before interest and taxes (EBIT) grew by 5 % to € 282.85 million despite the 6 % increase in depreciation and amortisation. This resulted in an EBIT margin of 2.3 %, after 2.2 % the previous year. The profit before tax grew by 15 % to € 262.96 million. The tax rate again climbed noticeably from 27.4 % to 29.8 %.
The minority interest grew by 148 % to € 23.15 million. The net income after minorities stood at € 161.46 million, this is 3 % higher year-on-year. The number of weighted outstanding shares remained unchanged at 114,000,000 shares, so that the earnings per share also grew by 3 % to € 1.42. The Management Board will propose a dividend of € 0.50 per share to the Annual General Meeting on 18 June 2010.
The strategy of diversification is a success, says Hans Peter Haselsteiner, CEO of STRABAG SE: “While some individual markets collapsed and many companies suffer under the economic crisis, our revenue and earnings were relatively stable – as forecasted. The output volume decreased by only 5 %, while the order backlog as at the end of 2009 increased by 5 % to € 14 billion. What is called for now is a high degree of flexibility regarding products and, above all, markets. Our high equity ratio of more than 32 % enables us to be flexible. It gives us security, when we work in new geographical markets and when we enter niche markets like railway construction and waterway construction.”
The balance sheet total of STRABAG SE remained nearly unchanged, reaching € 9,613.59 million in 2009 versus € 9,765.21 million in 2008. The individual balance sheet items also showed few large changes. The only item worth mentioning is the reduction of the current trade receivables by 15 % to € 2,401.59 million in favour of cash and cash equivalents, which grew by 20 % as a result of the group’s active working capital management, amongst others.
As in the years before, STRABAG ended the year with a net cash position. Reaching € 596.23 million on 31 December 2009, this item grew multifold in comparison to the end of 2008. The strong growth is explained by the repayment of financial liabilities and a higher level of cash and cash equivalents.
The cash-flow from operating activities grew significantly last year by 62 % to € 1,115.10 million. This growth is due in part to the increased cash-flow from profits by 14 % to € 613.41 million and a reduction of the working capital compared to 31 December 2008. In line with the strategy of lowering investments, the cash-flow from investing activities shrank from € -1,046.37 million to € -437.26 million. This is the result of restraint in the purchase of new equipment and the lack of enterprise acquisitions. The cash-flow from financing activities was again negative, at € -386.32 million, as the group repaid bank liabilities (€ -161.17 million) and opted against issuing a corporate bond in 2009.
Outlook
The figures for the 2009 financial year show the strength of STRABAG’s strategy: the geographical diversification of the activities and the broad product portfolio help compensate for the slowdown in certain markets through stronger engagement in other, more successful markets. Projects in the fields of transportation infrastructures and civil engineering which are being financed by the economic stimulus programmes should help to balance out the declining demand in the private sector.
STRABAG thus expects stable business in 2010 – a view that is supported by the high order backlog and by the figures for the first quarter of 2010. From today’s point of view, the output volume for 2010 should show only minor variations from 2009 in all three segments. STRABAG also expects to see no major changes in terms of the margins on the group level, even if the main profit drivers shift on the segment and country level. STRABAG is placing its bets on the niche of environmental technology and waterway construction. The company has made investments in these areas in the past few years. STRABAG also sees the field of railway construction as an area with a promising future.
To further diversify the business and spread the risk, STRABAG is expanding its activities in property and facility management and plans to increase its presence in non-European markets.