Strabag first quarter net loss deepens

Austrian contractor Strabag reported a €159 million net loss for the first three months of the year, 36% worse than the net loss of €117 million it reported for the first quarter of 2011.

CEO Hans Peter Haselsteiner put the figures down to a reduced number of projects in Europe.

"As in the 2011 financial year, the lack of infrastructure investments by the public sector in Europe will continue to have a negative impact on the transportation infrastructures segment," he said.

"A further burden will likely be the weakened demand for construction in Poland after the European Football Championship. On the other hand, we expect to see a still solid business in the German building construction and civil engineering segment as well as improved results in niche markets," Mr Haselsteiner added.

Revenues also dropped 1% year-on-year to €2.2 billion, but the company's order backlog reached €15.7 billion at the end of the first quarter - a new record, according to Strabag.

This was in part thanks to two new large projects it was awarded at the beginning of 2012 - a €1 billion contract to build a bypass around the city of Milan, Italy, and a tender for part of the works on the Stuttgart 21 railway station project in Stuttgart, Germany.

Nevertheless, Mr Haselsteiner said the company's earnings before interest and taxes (EBIT) forecast for 2012 of over €300 million was looking "more than ambitious".