2023-11-16 08:10:00
In the first three quarters of 2023, output increased by 8 percent to 13.6 billion euros compared to the same period last year, as the group announced on Thursday. The outlook for the full year has now been raised from 18.6 to 18.9 billion euros.
“Over the course of the year so far, it has been confirmed that thanks to our broad positioning – by country and construction sector – we are in a position to more than compensate for declines in individual construction segments,” explained CEO Klemens Haselsteiner.
“While residential construction remains under pressure in the current environment, we are seeing positive trends in public building construction and commercial and industrial construction,” said the CEO. Business development in transport infrastructure construction remains “remaining solid”.
“In view of the continued growing order backlog and the significant increase in performance in the first nine months, we are raising our performance forecast for 2023,” said Haselsteiner.
Biggest performance increases in Germany and Austria
Despite “continuing challenging conditions,” the board is anticipating “a new record performance” of around 18.9 billion euros for the 2023 financial year – that would be an increase of almost 7 percent compared to the previous year. Growth is expected in all operating segments. In 2022 there was an increase in construction output of 10 percent to 17.7 billion euros. According to Austria’s largest construction group, net investments (cash flow from investing activities) should not exceed 700 million euros.
The largest increases in performance this year were recorded in the “home markets of Germany and Austria” in the first three quarters. This was followed by Romania, Poland and the United Kingdom, where the two largest projects in the order backlog are currently being processed. But there were also declines – in the Czech Republic, Sweden and Denmark.
The order backlog rose by 4 percent to 24.4 billion euros in the period from January to September 2023. The “largest increases in absolute numbers” were achieved in Germany, particularly in building construction and civil engineering, as well as in Poland and the Middle East.
“Tense situation in residential construction”
In Austria, the order backlog – “mainly due to the tense situation in housing construction” – remains below the comparatively high level of the previous year. In the Americas region, the order backlog also declined due to the ongoing processing of major projects.
The number of employees increased by 4 percent in the nine-month period to 76,632 employees (full-time equivalents) worldwide. According to the information, the largest increase occurred in Germany as a result of a takeover in Property & Facility Service, the second largest in the Americas region. There has been an increase in capacity to process mining projects. In the remaining markets, some personnel were cut and some were hired. “The changes almost cancel each other out.”
This year’s goal of an EBIT margin of at least 4 percent will “continue to be adhered to”. In the previous financial year, 2022, the EBIT margin fell from 5.9 to 4.2 percent, and earnings before interest and depreciation (EBIT) fell by 21 percent to around 706 million euros.
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