- Production output up by 18.4% in the first quarter to EUR 768m
- Record order backlog of EUR 5,527m significantly higher than previous year
- Weather conditions cause EBT to decline by EUR -11.0m against Q1/2016
- Positive outlook for full business year 2017
Vienna, 30 May 2017 – PORR has started the 2017 business year with a strong performance in the first quarter. Against a challenging backdrop, PORR increased its production output by 18.4% against the comparable period to EUR 768m. In particular, the market position in Germany was strengthened through acquisitions and the expansion of the range of services offered.
“We have laid the foundations for a successful 2017 with the positive performance in the first quarter”, said Karl-Heinz Strauss, CEO of PORR AG. “A particularly welcome factor is that every business unit achieved double-digit growth. Given our excellent order situation, we are confident about the current business year.”
Exceptional order situation
The order situation set another new record as of 31 March 2017: the order backlog increased by 7.3% to EUR 5,527m. The order intake rose even more sharply and was up by 22.4% year-on-year to EUR 1,491m – without any one-off effects from large-scale projects.
The largest new orders were the railway line LK 354 Poznań–Piła in Poland and a section of the U5 metro line in Frankfurt - a milestone in structural engineering. PORR Deutschland GmbH will realise the underground section from Platz der Republik to Emser Bridge. In addition PORR acquired the residential project Stresemann Quartier in Hamburg, the residential project Naumannsche Brauerei in Leipzig, the office project Sono West in Frankfurt and an additional lot on the Emscher sewer. Another major road project was acquired in Slovakia with the D3 Čadca and on the new market of Norway PORR won the tender for the E18 Varodd Bridge. The largest new orders in Austria were the Mur power plant consortium Graz and the residential complex Dr. Karl Renner Promenade in St. Pölten. In Switzerland PORR acquired two additional building construction projects at Zurich Central Station, as well as the tender to overhaul the Zentralschweizer Nationalstraße N4 between Zurich and Altdorf.
Weather conditions lead earnings to slip back against previous year
The late start to the construction season caused by the weather led earnings to fall short of the value of the first quarter of the previous year. While EBITDA grew by 16.7% yoy to EUR 15.1m, EBIT stood at EUR -8.2m, which was 40.2% below the value of the previous year and EBT of EUR -11.0m was down by 10.2% yoy. Total assets declined by EUR 38.4m against the comparable closing date to EUR 2,322.0m. The issue of a hybrid bond (EUR 123.5m) led to a significant increase in equity in the period under review. The equity ratio stood at 24.0% at 31 March 2017 compared to 18.7% at 31 December 2016. Net debt rose as a result of the reduction in cash and cash equivalents at 31 March 2017 by EUR 248.5m to EUR 195.2m.
PORR is in good shape economically. The increase in production output and the all-time high order backlog allow the company to approach the full year 2017 with optimism. The successful expansion in Germany, the highly promising acquisitions and the good performance in new markets such as Norway and the UK have also strengthened PORR’s market position. In light of all of these factors, the Executive Board expects a further increase in output and earnings for the current business year.
Christian B. Maier
T +43 50 626-1009
M +43 664 626-1009
comms @ porr-group.com
T +43 50 626-1001
M +43 664 626-1001
comms @ porr-group.com
Sandra C. Bauer
Head of Corporate Communications | Corporate Spokesperson
T +43 50 626-3338
M +43 664 626-3338