*Before non-recurring restructuring costs of €-3.1 m (2008: € -0.1 m), profits from EAI € 3.0 m (2008: € 3.7 m) profit from divestment of EAI € 5.2 m (2008: € 2.5 m) & revaluations € -1.0 m (2008: nil)
-
Market conditions remain very challenging and have worsened since the half year figures.
-
Net profit after tax first nine months down 24% (€ 20.1 million versus € 26.6 million in 2008).
-
Revenues first nine months hold up (excluding currency loss).
-
Forward order book stable but postponement of orders.
-
Net debt reduced by € 23 million due to strong focus on working capital reduction.
-
Further restructuring costs and provision full year expected to be € 6-8 million.
-
Outlook for 2009: underlying EBITA (before EAI, restructuring & revaluations) approximately € 43-45 million and profit after tax of approximately € 18-20 million (after restructuring costs, provisions and revaluations).
Sylvo Thijsen, CEO Grontmij N.V., statement:
'The 24% decline of profit after tax in the first nine months reflects the recessionary effects in Europe especially the UK with recovery slower than expected. What we are seeing is that clients, also in the very important public sector, are postponing start dates on contracted projects. Whilst revenues hold up, margins fell due to sliding productivity. We expect markets to stabilize in the first half of 2010 and expect a slight recovery in the second half of 2010.
Our response to these market conditions has been focused and fast. We were already committed to further improving operational performance through managing overhead,exiting low performing activities and tightening cash management. At the third quarter we have incurred restructuring costs of € -3.1 million, and asset revaluations of € -1.0 million.
We forecast a further € 6-8 million of restructuring provisions for the year to result in a structurally improved cost base. We believe these actions are necessary to position Grontmij for sustainable growth as European player. The estimated EBITA before exceptional items for the year 2009 will be approximately € 43-45 million while profit after tax including all costs, provisions and revaluations will amount to approximately € 18-20 million.'