Decrease in Building results
Significant disappointments have once again cropped up in relation to works contracted during 2005. These disappointments are such that they require additional loss provisions. Causes include significant increases in costs due to major delays in the building process and further increases in the cost of materials and subcontractors. The larger portion of these disappointing results cannot be passed on to the client. The measures previously announced in 2006 in relation to the Building Division, such as strengthening division management and project and risk management, as well as the creation of a business unit responsible for large projects have been completed or are in preparation.
Downward adjustment to 2007 forecast of profit after taxes
The abovementioned disappointments are of such magnitude that an adjustment to the earlier published forecast of € 95 million profit after taxes is unavoidable for Heijmans N.V. The impact of these disappointments on the profit after taxes is approximately € 40 million. This implies an adjustment to the 2007 forecast of profit after taxes from € 95 million to € 55 million and an adjustment to the forecasted profit per share of € 3.95 to € 2.30. Heijmans will propose to the Annual General Meeting of Shareholders in April next to maintain the dividend over 2007 at the level of 2006, being € 1.45 per share.
Operating performance
Developments in other divisions are currently in line with the performance outlined in the semi-annual report. Additional information will be provided on this subject and on the developments at the Building division during the upcoming November 14 trading update. Furthermore, additional details will be provided concerning current market and other developments in relation to the current objectives for 2008.
For additional information:
Media
Frank Janssen
Director of Corporate Communications
+31 73 543 51 69
Analysts
Fons van Lith
Director of Investor Relations
+31 6 51314952