Heijmans on track: Results improved; balance sheet strengthened

11/12/2009, 7:45 AM (Source: GlobeNewswire)
Update on business developments

* Positive underlying operating result;
* Revenues lower, but healthier;
* Slight increase in order book with improved margins;
* Property Development continues to stagnate;
* Balance Sheet strengthened: increased equity, lower debt level;
* Organizational downsizing proceeding more rapidly than planned;
* Strategic restructuring on track;
* Sale of Heitkamp; positive transaction result and a good step
towards further debt reduction.


Rob van Gelder, Chairman of the Heijmans Executive Board: "We are
well on track; the downsizing is proceeding more rapidly than planned
and we make progress on the reduction of debt. The company is
progressively doing better. Stagnation of the housing market is still
affecting us adversely."

General developments
The underlying operating result exhibited a positive trend over the
past few months. The underlying operating margin amounts to
approximately 1% of revenues in the months of July, August and
September. Performance during the past few months considerable
improved compared with the same period in 2008. This is largely
explained by the fact that the Dutch Building Activities and the
projects in Belgium that were highly unprofitable in 2008, made on
balance a positive contribution to the result over the past few
months.

Compared with the same period in 2008, the level of Heijmans'
revenues in the Netherlands in the last few months is lower due to
the selective contracting policy and the slowdown in the housing
market. Revenues generated by international activities over the last
few months are slightly higher than the same period in 2008.

The Heijmans order book at 30 September 2009 rose slightly in
comparison to the end of June 2009. Due to a selective contracting
policy, the quality level of the order book in terms of gross margin
is good.

Streamlining the organization
Over the past few months, the Heijmans organization has been further
adjusted and has consequently become more responsive. At the end of
the third quarter, the number of FTEs in the Netherlands on balance
declined by approximately 1,000 in comparison to one year ago.
Current projections call for a decline of approximately 1,300 FTEs as
per the end of the first quarter of 2010. The program effects all
business areas.

Revenues and order book

Netherlands
Property Development continues to be severely impacted by poor
housing market conditions. While a somewhat increased movement in the
housing market is perceptible, the revenues from and the sale of new
homes in the last few months continues to lag behind 2008 levels. In
the first 10 months of this year, exclusive of dissolutions,
approximately 1,000 homes were sold, versus approximately 2,150 homes
for the entire year 2008. Compared with prior years, a relatively
higher number of homes were sold in the somewhat lower market
segment.

The revenues of Residential Building, Non-residential Building and
Infrastructure declined over the past few months in comparison to the
same period in 2008, partly as a result of the stricter policy of
pursuing margin over volume. Technical Services revenues remained at
a good level.

The Heijmans order book in the Netherlands at 30 September 2009 rose
slightly in comparison to its status at the end of June 2009. The
Property Development order book declined due to the deferral of
residential building projects. The order book rose in other sectors.

The order book for Non-residential Building and Technical Services at
30 September 2009 rose in comparison to 30 June 2009 in part due to
the umbrella contract for the realization of the Vredenburg Music
Centre in Utrecht valued at ¤81 million. With respect to the
Infrastructure order book; the ¤87.5 million Prorail contract for the
substructure of the track doubling project between Utrecht-Lunetten
and Houten, as well as the approximately ¤50 million contract with
the Directorate-General for Public Works and Water Management for the
widening of the A50 Valburg - Grijsoord motorway, contributed
significantly to the increase.

Foreign Operations
The revenues generated by foreign operations rose over the last few
months in comparison to the same period in 2008. Revenues in the
United Kingdom and Belgium declined. Revenues in Germany rose over
the last few months. The three subsidiaries Heitkamp, Oevermann and
Franki all contributed to this increase.

The order book in these three countries as per the end of September
2009 is slightly higher compared with 30 June 2009. In Belgium, the
Antwerp Master Plan Brabo I Project was acquired in July 2009. This
PPP contract with a total construction value of ¤124 million,
approximately half of which is for the account of Heijmans
Infrastructure Belgium, comprises elements such as tramline
extensions and the rehabilitation of roads.

Underlying operating result
The underlying operating result over the past few months showed a
positive trend. The underlying operating margin amounts to
approximately 1% of revenues in the months of July, August and
September. Technical Services and Infrastructure made a significant
contribution in this regard. The other sectors in the Netherlands
realized an underlying operating result around the breakeven point
during these three months. The United Kingdom, Belgium and Germany
each made a positive contribution to the operating result.
Leadbitter's performance during the past few months was once again
strong.

Capital and Financing
Heijmans is focused on the structural reduction of debt and on the
creation of a more solid ('deleveraged') capital structure. The
rights issue has been completed last July and the net proceeds were
used to strengthen the balance sheet.

Agreement was reached on 2 November 2009 concerning the takeover by
Eiffage Travaux Publics SAS of all shares in the railway construction
company Heitkamp Rail GmbH and Heijmans Rail B.V. The transaction,
resulting in a limited book gain, represents an important step
towards further debt reduction.

Efforts to reduce the capital requirements of Dutch property
development operations are progressing laboriously. Aside from
financial parties, housing corporations and municipalities are also
reticent to participate as risk-bearing partners. In spite of the
difficult economic conditions, Heijmans has taken constructive steps
in strengthening the balance sheet, resulting in increased equity and
less debt.

Reverse stock split
Due to the reverse stock split completed on 5 October 2009, the
number of shares and depositary receipts for shares was reduced from
168,508,088 to 16,850,809.

2009 Annual Figures
Heijmans will present its 2009 annual results on 25 March 2010.


For additional information:

Media and Analysts:
Michiel Segers
Director of Investor Relations & Corporate Communications
+31 73 543 51 90
msegers@heijmans.nl


This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.

View document
Copyright GlobeNewswire, Inc. 2016. All rights reserved.
You can register yourself on the website to receive press releases directly via e-mail to your own e-mail account.