Ballast Nedam Trading Update for the Third Quarter of 2013: Disappointing Third-Quarter Operations
NIEUWEGEIN, The Netherlands, October 25, 2013 /PRNewswire/ –
- Ongoing reorganization affects approximately 250 jobs - Stable order book of EUR 1 630 million - Revised forecast for 2013: operational loss
Construction and infrastructure markets were under sustained pressure. As a
consequence, competition and price pressure have continued to increase. We expect this
situation to persist for some time.
The third-quarter results were disappointing. Unfavourable results were achieved on a
major project and several regional infrastructure projects. These had started before the
restructuring of the regional infrastructure companies concerned that was set in motion at
the end of last year. The risk profile has also increased because of uncertainty
surrounding substantial additional work on a major project. There were also substantial
losses at two specialized companies.
The regional construction companies, the specialized companies and the head office
will be further reorganized in the fourth quarter, with the loss of some 250 jobs, and a
reorganization expense of approximately EUR 7 million. Management changes have been made
in the regional construction companies and specialized companies.
The order book grew in the third quarter from EUR 1 567 million at half year to EUR 1
630 million, because of the Zaanstad Penitentiary PPP project, the E and F piers at
Schiphol Amsterdam Airport, the development of (Y)ours Leiden, and 157 newly built homes
The Pi2 consortium, a joint undertaking of Ballast Nedam (65%) and Royal Imtech (35%),
reached financial close for the Zaanstad Penitentiary PPP project. Pi2 is responsible
under the DBFMO contract with the Government Buildings Agency for the design, new
construction, financing, maintenance and technical facilities management for a 25-year
period after the penitentiary becomes available. Financial close was also reached for the
work for Schiphol Amsterdam Airport’s transition to central security. Ballast Nedam is
constructing an overlay on the E and F piers and a terminal extension between these.
Phase 1B of (Y)ours Leiden consists of 117 starters’ apartments, 60 of which are for
rent and 57 owner-occupied. More than 90% of the owner-occupied homes have been sold. VORM
Ontwikkeling, Ballast Nedam and Syntrus Achmea Real Estate & Finance are developing and
constructing (Y)ours Leiden, the most sustainable student campus in Europe, with 1900
student apartments, 205 starters’ homes, and associated facilities.
On behalf of the Ymere housing association, two of the five apartment buildings on
Tugelaweg in Amsterdam-Oost are being replaced by mixed new building. The 157 newly built
homes are a combination of 85 social housing units, 33 for market rent, and 39
Not yet included in the order book is the integrated performance contract for the
operational management and maintenance of all dry infrastructure for the Port of Rotterdam
for a five-year period, which Ballast Nedam won in the third quarter. Student
accommodation organization DUWO has recently opted for modular construction for the final
phase of the Uilenstede campus redevelopment and new construction in Amstelveen. The
building of 233 new homes will have exactly the same appearance as the other new campus
buildings. Modular building up to eleven floors is a first for Ursem Modular Building
The net financing position comprised a debt position of EUR 116 million, which
includes net cash of EUR 44 million. The debt position at half year was EUR 124 million.
The financing requirement is higher in the course of a year than at year-end.
The sale of the raw material company Yvoir was completed in July. This sale is in line
with Ballast Nedam’s objective to improve the financial position. Negotiations are ongoing
regarding the sale of the interest in the raw material company Beheermaatschappij Bontrup.
Agreement on terms has yet to be reached with Remex Mineralstoff, which had made a
non-binding bid for Feniks Recycling.
Disregarding the results of disposals, we expect an operating loss for the full year
2013 because of the disappointing results at several companies and the ongoing
reorganizations. We refrain from further quantification of the forecast in view of the
persistent uncertainty surrounding substantial additional work on a major project and the
completion of disposals in 2013. In the half-year update we issued a forecast for the full
year 2013 of an operating profit of approximately EUR 15 million.
Ballast Nedam engages in integrated projects in The Netherlands in four areas of work:
housing, mobility, energy and nature. Within this area we focus on the niche markets:
industrial construction, offshore wind turbines, secondary raw materials and alternative
fuels. In a number of areas of expertise, we also operate internationally. The Ballast
Nedam share is included in the Amsterdam Small Cap Index (AScX) of NYSE Euronext.
Ballast Nedam’s approach is based on life cycle thinking and acting: we develop,
construct, manage and recycle. We are involved in long-term management, maintenance and
operation of projects and organize financial feasibility. Our supply and specialized
companies deliver competitive edge through innovation, cost leadership and purchasing
strength. Ballast Nedam’s range of services is shifting towards modular products and
specific product-market combinations with greater added value.
Ballast Nedam creates enduring quality combined with lower life cycle costs for its
customers and society. http://www.ballast-nedam.com
SOURCE Ballast Nedam