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Tuesday, November 29, 2022

Strabag significantly increased construction output

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Dave
Dave
I have been working in news websites for the past three years. I am currently an author at 24 hours world, where I mainly cover world news. I have also written for The Huffington Post and The New York Observer.
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In the first three quarters, there was growth of 10 percent to EUR 12.65 billion compared to the same period last year, as the group announced on Wednesday morning. That was more than at record times before Corona, in the same period of 2019. At least 17 billion euros in construction work is now expected for 2022, instead of the previous 16.6 billion euros.

“In view of the high backlog of orders and the mostly good construction weather so far, we are raising our output forecast for 2022 from previously 16.6 billion euros to at least 17 billion euros,” says CEO Thomas Birtel. In times when individual construction segments recorded slumps, the corporate strategy of diversification proved itself again. “In particular, the demand from the public sector in the infrastructure sector is having a stabilizing effect here,” explained the CEO. After all, 63 percent of Strabag customers can be assigned to the public sector.

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Business was particularly good in absolute figures this year between January and September in Germany. This was followed by the United Kingdom, where the two largest projects in the order backlog are being processed, as well as Austria and the Czech Republic. In contrast, construction output declined slightly in Poland, Slovenia, Denmark and the Benelux countries.

Austria’s largest construction group is sitting on a thick backlog of orders. As of the end of September 2022, the order backlog had increased by 8 percent year-on-year to EUR 23.33 billion and was “only slightly below the record level of the first half of 2022”.

According to the company, there was growth in Germany and Austria, mainly in building construction and civil engineering, as well as in Italy, Romania and Croatia. In Hungary, the United Kingdom and Denmark, on the other hand, the order backlog declined as a result of the completion of major projects.

The number of employees remained almost stable. Strabag employs 73,496 people worldwide (previous year: 73,578) – a little fewer in the Americas and Poland regions, but more in Germany and the United Kingdom in particular.

For 2022 as a whole, management is sticking to the target of an EBIT margin of at least 4 percent. Net investments (cash flow from investing activities) “should not exceed EUR 550 million”.

Source: Nachrichten

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