Danish construction company MT Højgaard (MTH), which is owned by two listed companies Højgaard Holding (CPH: HOEJ B) and Monberg & Thorsen (CPH: MT B) released Q1 2012 interim result today. The company called the financial performance unsatisfactory. The loss before taxes of 152 million DKK exceeded even internal estimates. Revenue was actually up nicely to 2.5 billion DKK but many projects, particularly two bridge projects in Sweden.
The company says that unfortunately margins on orders accepted in 2011 and before that are too low compared to the complexity and risk profiles of these orders. There have been management changes due to the aforementioned issues earlier. MTH now expects to post a loss for the fiscal year 2012 as opposed to an earlier expectation of a positive result. Revenue is expected to be even or slightly higher than in 2012 but pre-tax margin should hover around -1%. The overall result for the remaining three quarters is expected to be positive and the annual operating cash flow is also expected to break par.
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