Special earnings effects – on the whole, confirmation of forecasted 2017 EBIT margin of at least 3 percent
6 December 2017
On the basis of a legally binding settlement agreement concluded today in relation with a former project in the Middle East region, the Management Board of STRABAG SE expects to realise income (before income taxes) of a mid-range double-digit million-euro amount in the 2017 financial year.
Another positive aspect to be noted is that – counter to the original assessment – the required reorganisation of STRABAG PFS will apparently have no noteworthy impact on the 2017 net income after minorities.
This development, however, is contrasted by considerable
uncertainties regarding an estimate of the financial impact that could result from the Alto Maipo project in Chile. Due to the difficult technical circumstances, extensive financial provisions had already been made on 31 December 2016 for the remainder of the project development. In Q3 2017, additional provisions made on account of a cautious project assessment had a negative impact on earnings. Negotiations with the client over necessary changes to the framework conditions regarding project continuation finally led to the signing on 24 November 2017 of a term sheet that remains subject to approval by the Supervisory Board of STRABAG SE. This alone will not guarantee project continuation, however. The project continuation will depend on whether and to which degree the client fully meets the conditions defined within the term sheet and if the additional bank financing can be secured. This cannot be assessed at present.
Against the background of the above-mentioned positive influences on the earnings, no scenario appears possible from today’s point of view that could threaten the forecasted EBIT margin for 2017. The Management Board of STRABAG SE therefore confirms the targeted EBIT margin of at least 3 % for the 2017 financial year as being secured.
