Net loss due to one-off write-down of land and real estate positions
• Operating profit (EBITDA) before impairments: € 138 million (2011: € 192 million)
• One-off write-down of land and real estate positions: € 196 million
• Net result: € 123 million loss (2011: € 81 million profit)
• Turnover: € 4.9 billion (2011: € 4.7 billion)
• Order book in 2012: € 5.5 billion (2011: € 5.5 billion)
We report a net loss of € 123 million for 2012. The negative result is attributable to a one-off write-down of € 196 million on our land and real estate positions. Our focus on growth markets and our good activity spread yielded a positive operating profit of € 138 million and a 4% increase in turnover in 2012. We achieved strong growth in the Energy & Telecom sector and in Canada/United States, while we maintained our stable position in the UK by continuing to diversify. The Building & Property Development and Infrastructure sectors in the Netherlands are contending with a 6% decline in turnover on markets that continued to deteriorate. Almost 50% of VolkerWessels' turnover now stems from the Energy & Telecom sector and from our local markets in Canada/US and UK.
Operating profit before one-off write-downs is lower than last year, due to difficult market conditions in the Netherlands, insolvency problems affecting some clients in the Building & Property Development sector, reorganisations and start-up costs in the energy market.
The order book remained stable during 2012 and its quality was further improved by the award of a number of substantial, long-term management and maintenance contracts.
Jan van Rooijen, CFO, comments: "Despite difficult conditions in the Netherlands, our focus on growth markets such as Energy & Telecom and Canada has delivered a positive operating profit and modest growth in turnover. Needless to say, the economic crisis in the Dutch market is also taking a toll on our business and we have been forced to bring the valuation of our land and real estate positions in line with the new reality, with no short-term prospect of a recovery. The breadth of our portfolio reduces our vulnerability and, thanks to our strong geographical market positions and our solid financial position, we are confident about the future."
VolkerWessels has again achieved good results in the first six months. Despite ongoing challenging market conditions in a...