Image: HELMUT FOHRINGER (APA)
The construction company increased net earnings to EUR 76.6 million, after EUR 43.8 million in the same period of the previous year, according to a press release from the group. In terms of construction output, the International + Special Divisions area stood out with an increase of 13 percent to EUR 1.73 billion, while the North+West (EUR 3.63 billion) and South + East (EUR 2.79 billion) regions increased by around 7 percent.
In terms of construction work, the group referred to the high order backlog of EUR 24.32 billion, which will last into the fourth quarter of 2024, according to Strabag CEO Klemens Haselsteiner. On the other hand, the high construction output is also due to the inflationary environment.
Declines in the Czech Republic, Denmark and Sweden
The construction group recorded the greatest growth in its home markets of Austria and Germany, followed by Romania, Great Britain and Poland. On the other hand, Austria’s largest construction group recorded declines in the Czech Republic, Denmark and Sweden, according to the half-year report. Consolidated group sales increased by 6 percent.
The construction group recorded increases in the order backlog in Germany, Romania, Croatia, Italy and Poland. Declines were recorded in the Americas region and in Great Britain due to the completion of major projects. In Austria, too, the order backlog fell by 5 percent. According to Strabag, this is due to the interest rate turnaround and the tightened lending guidelines for housing construction loans. “While we are experiencing very solid business activity in traffic route construction, there are some signs of a downward trend in building construction,” said Haselsteiner. “This is mainly due to declining activity in residential construction. In Austria, this effect is more pronounced than in the European environment due to a combination of higher mortgage interest rates and tighter lending guidelines.”
In the first six months, Strabag achieved an operating result (EBIT) of EUR 87.35 million – compared to the same period of the previous year, this is an increase of 37 percent. The growth in earnings is mainly due to the North + West segment, while the South + East and International + Special Divisions segments developed more weakly. However, Strabag referred to the generally weaker business in the South + East segment in the first half of the year. And major projects would lead to fluctuations in international business and special projects.
The construction group employed an average of 75,551 people in the first half of the year, 4 percent more than in the same period of the previous year. This is due on the one hand to the takeover of the German facility management service provider Bockholdt and on the other hand to mining projects in the Americas region, for which additional employees were hired.
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