Heijmans forecasts profitable year
By Helen Wright16 November 2010
Dutch housing contractor Heijmans is maintaining its outlook for a profitable close to 2010 despite reporting a -10% year-on-year drop in third quarter revenues to € 640 million.
The company reported an operating profit margin of almost 2% in the three months ended 30 September, compared to 1% during the same period last year.
CEO Gerrit Witzel was upbeat: "Despite difficult circumstances in the construction sector, I am fairly satisfied with the course of events. The operating results show an improvement while turnover decreases; the order portfolio remains at good levels. The focus on integrated approach, quality improvement and cost control are bearing fruit. We know how to operate in a difficult market."
Heijmans sold 1069 houses in the first nine months of 2010, compared to 708 last year and reported that residential building activities in the Netherlands and infrastructure activities in the Netherlands and Belgium performed particularly well.
But the company reported a "virtually unchanged" order portfolio compared to the end of June. In recent months, Heijmans said it received new projects for a total of € 600 million.
Meanwhile, in anticipation of growing demand for large and complex projects in the market, the company said it is combining its Proper-Stok and Heijmans Vastgoed operations into a single integrated organisation.
In addition, Heijmans is reorganising its infrastructure activities into two divisions consisting road and road technology, and underground and location-dependent infrastructure projects.
"This adaptation of the organisation will create more synergies between the various infra disciplines and create a more effective alignment with market requirements," the company said.