Heijmans N.V. (construction, property development and related activities) has just gone through a turbulent first half year. Changed economic conditions, political instability and restructurings are pressurising the result, primarily in commercial property, ordinary infrastructure and supply. Positive aspects included sales and construction of houses and the construction of large commercial and industrial and infrastructure projects.
Increase housing unit sales, the selective participation in tenders for projects and cost reductions are expected to lead to improved profitability compared to the first half of 2003. For the entire year 2003, Heijmans is abandoning its profit objective of Ã¢âÂ¬ 87.6 million and is now expecting net profit of approximately Ã¢âÂ¬ 75 million. This does not take into account any consequences of investigations by the NMa and the public prosecutor´s office of the building industry inquiry. The order portfolio is well stocked. In the short term, priority will be given to cash flow and margin over turnover growth.
Heijmans´ strategic focus in the middle term is aimed at activities in the building chain with a higher margin in order to realise additional value-adding growth. In this respect, new strategic objectives will be adopted for the period up to 2008.
Source: Heijmans N.V.