Denmark’s largest construction & civil engineering company MT Højgaard posted an annual pre-tax loss of 335 million DKK in 2011, corresponding to pre-tax margin of -3.6%. The firm described the year simply as ”bad”. The loss was larger than what the company had been guiding for.
MTH says that the poor result is not attributable to poor market conditions alone. President & CEO Kristian May is therefore let go and Board Of Director’s deputy chairman Jørgen Nicolajsen will be acting as interim President & CEO until a permanent replacement can be found. The company will start to focus on risk management and profitability even more vigorously.
The company says that balance sheet is still healthy with equity of 1.3 billion DKK (equity ratio is down to 22.8% from 34.5% at the end of 2010). The order book stands at 9 billion DKK. In 2011 revenues were 9.3 billion and 2012 guidance is for a similar amount. Financial performance is expected to be positive.
MT Højgaard is owned by two listed companies: Højgaard Holding (CPH: HOEJ B) and Monberg & Thorsen (CPH: MT B). Both of them are under considerable pressure in today’s trading. After Monberg & Thorsen divested its additional operations last year, it has been speculated that some kind of arrangement combining these companies might be forthcoming. It is now said that an independent listing will be postponed until better results are shown.
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