Vienna - Austria-based construction group STRABAG SE
reported Friday that net losses in the first quarter widened by 59
per cent to 129 million euros (179 million dollars), owing largely to
red-ink results from its income on interest.
STRABAG, one of the leading builders in Germany and Central and
Eastern Europe, saw operating losses of 153 million euros, 10 per
cent worse than in the first quarter last year.
Revenue grew by 18 per cent, to 2.08 billion euros, boosted by the
acquisition of two German road construction firms in 2008.
As construction is a seasonal business, STRABAG typically makes a
loss during the cold period, which is then compensated in later
months.
Since the company's business volume increased in the first three
months of 2008, the seasonal effect on operating profit, or earnings
before interest and taxes, was more pronounced, STRABAG said in its
quarterly statement.
While income from net interest had still made a positive
contribution to profits in the first quarter of 2008, lower net
liquidity and higher currency exchange losses added up to 26 million
euros in net interest losses this year.
The group's order backlog stood at 12.85 billion euros at the end
of March, a 2-per-cent increase from a year earlier.
STRABAG chief executive Hans Peter Haselsteiner said he did not
share the budding optimism about economic recovery, but 'rather, we
believe that the external factors will continue to develop
negatively.'
Nevertheless, Haselsteiner said his company expected to end the
year at the same levels as the last one, helped by economic stimulus
programmes adopted by various governments. In 2008, STRABAG made a
net profit of 157 million euros.
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