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."