In 2003, the net profit of the building and infrastructure concern Dura Vermeer Group turned out on a loss of € 5,8 mln against a profit of € 13.6 mln in 2002. The loss is mainly due to the arrangement that Dura made for reorganisations and fines of the Netherlands Competition Authority (NMa). The division Building and Real Estate performed above budget and obtained a net profit of special charges of € 10.9 mln.
Due to a decline of the operating income of 4% to € 962 mln in 2003 (2002: € 1,001 mln), the result of Dura Vermeer’s ordinary business activities after taxes declined with 8% to € 12,4 mln (2002: € 13,6 mln). The net profit turned out on a loss of € 5,8 mln against a profit of € 13.6 mln in 2002. The explanation of this result lies in the arrangements that Dura made for reorganization costs and for fines of the Netherlands Competition Authority, in total € 18,2 mln. The fines of the NMa amount to € 11,6 mln, against which Dura has filed an objection. For the coming year, Dura Vermeer expects a constant operating income and positive results.
The division Building and Real Estate performed above budget. The operating income of the division in 2003 increased to € 556 mln (2002: € 551 mln). This increase was realized despite the diminished request for office and business spaces and the stagnation of mainly house construction projects. 54% of the operating income was realized by house construction and 46% by commercial and industrial building.
The net profit of special charges increased from € 7,9 mln in 2002 to € 10,9 mln in 2003. Within the division, the company realized a better cost reduction, an enforcement of the production management in the subsidiaries and an improved risk analysis of new development projects last year. For 2004, Dura Vermeer expects positive results, which by the way will depend partly on the decisions of the NMa. On the longer term, the expectations of Dura Vermeer are positive.