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| BAM nine-month net profit down 65.8 pct to €65 million Dutch builder Royal BAM Group's revenue fell by approximately eleven percent during the first nine months of 2009, to €6.0 billion (first nine months of 2008: €6.3 billion). More than half of this decline was caused by currency exchange fluctuations. The result before tax and impairment fell sharply to €77 million (first nine months of 2008: €242 million). The drop in profit can be attributed primarily to the loss in the Property sector and lower contributions to profits in the Construction and Consultancy & Engineering sectors. The loss in the Property sector was caused by provisions for lower revenue forecasts, provisions for redevelopment costs and insufficient coverage of overheads. Of the total additional loss in the Property sector in the Netherlands (€68 million), €24 million was an operating loss while €44 million was recorded as an impairment of property positions. It is currently clear that the property market would take an even longer time to recover. This forced BAM to write down goodwill paid upon the acquisition of the Dutch property activities by €40 million. BAM ’s net result for the first nine months of 2009 amounted to €65 million (first nine months of 2008: €191 million), because of €80 million in extraordinary tax benefit as a result of the liquidation of non-operational activities in Germany. The order book fell during the first nine months of 2009, by more than 11% to €11.6 billion as at 30 September 2009 (year-end 2008: €13.1 billion). The drop occurred primarily in the Property sector and in the United Kingdom and Ireland. Royal BAM Group expects to achieve approximately €8.3 billion in revenue and a net result of at least €100 million for the whole of 2009. write your comments about the article :: © 2009 Construction News :: home page |