Denmark: MT Højgaard Ends 2011 with Loss

2011 was a bad year for Denmark’s largest construction and civil engineering group, which emerges from the financial year with a pre-tax margin of minus 3.6% and a pre-tax loss of DKK 335 million. The financial statements are, as previously announced, negatively affected by losses on isolated projects, and in addition there are provisions, with the result that the loss is even bigger than expected.

Based on the poor financial performance, President and CEO Kristian May and the board of directors have agreed that Kristian May resigns from his position. Until a permanent successor has been found, the board’s deputy chairman, Jørgen Nicolajsen, will be acting President and CEO. The work of finding a new President and CEO has begun.

– The poor result cannot be explained by market conditions alone, so we will have to implement a period with great focus on risk management and profitability. MT Højgaard has already initiated a number of measures in these areas, and I intend to continue with this. The change in management structure will make it possible to intensify and extend these efforts, says Jørgen Nicolajsen.

 Order book worth DKK 9 billion

Revenue in 2011 was DKK 9.3 billion, an increase of DKK 1 billion on the year before. The volume of orders at the beginning of the year was DKK 9 billion, and the total revenue is expected to stay at the same level as in 2011, where it ended at DKK 9 billion.

A positive financial performance is anticipated for 2012.

– MT Højgaard and the subsidiary undertakings are recognised for delivering quality at the agreed time and price. It should also be taken into account that the total financial performance for 2011 overshadows the fact that several of the Group’s entities have performed in a rather satisfactory way, so the conditions for delivering positive financial results in 2012 are absolutely present, says Jørgen Nicolajsen.

With an equity of DKK 1.3 billion, MT Højgaard maintains its financial strength – an important factor for clients when they choose a collaboration partner.

[mappress]

Offshore WIND staff, March 14, 2012; Image: hmth