Welcome to the Newsroom

Here you will find the latest stories from our construction sites, highlights from our team members, ad hoc announcements and press releases on everything that moves us.
© STRABAG
© STRABAG

Special earnings effects – on the whole, confirmation of forecasted 2017 EBIT margin of at least 3 percent

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.

Download Press Kit as ZIP Download

STRABAG SE is a European-based technology group for construction services, a leader in innovation and financial strength. Our activities span all areas of the construction industry and cover the entire construction value chain. We create added value for our clients by taking an end-to-end view of construction over the entire life cycle – from planning and design to construction, operation and facility management to redevelopment or demolition. In all of our work, we accept responsibility for people and the environment: We are shaping the future of construction and are making significant investments in our portfolio of more than 250 innovation and 400 sustainability projects. Through the hard work and dedication of our approximately 86,000 employees, we generate an annual output volume of around € 19 billion.
Our dense network of subsidiaries in various European countries and on other continents extends our area of operation far beyond the borders of Austria and Germany. Working together with strong partners, we are pursuing a clear goal: to design, build and operate construction projects in a way that protects the climate and conserves resources. More information is available at www.strabag.com.