Bam considers divestment
By Helen Wright17 November 2011
Dutch contractor Royal Bam group is "reconsidering the position" of its consultancy and engineering business Tebodin after reporting disappointing results for the nine months to 30 September, 2011.
Nico de Vries, chairman of Bam's executive board, said the move was part of a decision to review the company's 2010 to 2012 strategy in view of the fact that most of the markets in which Bam operates "currently offer limited prospects for further growth".
"We will improve our organisational structure by amending the sector classification - forming sector construction and mechanical and electrical services. In addition, Bam is reconsidering the position of the engineering and consultancy company Tebodin," Mr de Vries said.
Bam reported net profit of €84 million for the first nine months of 2011, compared to a loss of €45 million for the same period last year. Revenues were €5.6 billion, compared to €5.3 billion in the period ending 30 September, 2010.
The construction division saw net profit fall to €49.8 million from €61.8 million for the nine-months in 2010, while construction revenues for the period were stable at €2.2 billion.
But the overall result was impacted by a net loss in Bam's property division of €2.9 million - nevertheless an improvement than the €57 million loss that the division recorded in the first nine months of last year.
Mr de Vries said the group result indicated a trend of levelling off. He said, "The uncertain and unfavourable market conditions continue. Bam companies have been affected by decreasing volumes, fierce competition and a sharp fall in prices."
Overall, the company is forecasting full-year 2011 net profit of €120 million, with revenues of €7.7 billion.