Short winter melts loss at builder Strabag

Aug 31, 2011, 7:25 GMT

Vienna - Austrian construction group Strabag said Wednesday it was able to narrow its half-year loss by 5 per cent, because the shorter winter made it possible to start building earlier this year.

The company, which is a leading builder in Central and Eastern Europe, made a net loss of 10.9 million euros (15.8 million dollars) in the first six months, which are traditionally marked by lower construction activity than the second half of the year.

However, the order books do not look as bright as the weather, as the project backlog has fallen by 6 per cent, mainly because projects were cancelled in Libya.

Warm temperatures led to a break-even of earnings before interest and taxes already by June instead of September, for the first time in company history. Strabag made an operating profit of 16.7 million euros, after a loss of 10.4 million euros in the same period of 2010.

The volume of the construction output grew 17 per cent to 6.14 billion euros.

Chief executive Hans-Peter Haselsteiner confirmed his outlook of raising the construction volume by 9.5 per cent to 14 billion euros this year. He projected an annual operating profit of 330 million euros, 10.4 per cent above last year.