Heijmans N.V. (construction and property development) announces that the results for the first half of 2004 correspond to the expectations. Both the trends in the market and the condition and quality of the order book confirm that the strategic choices presented in March 2004 were correct.
Growth has appeared in the owner-occupied sector while restructuring has been implemented in market sectors in a less favourable condition like road building and pipelines. Investments in organization and means of production have also been made in these sectors. Partly because of this, Heijmans has been able to exert its presence at both the beginning of the construction value chain (design, project development) and at the end (service and maintenance). This has contributed to the 23% improvement in earnings before interest and taxes (EBIT) to € 52 million (€ 42 million in the first half of 2003). Furthermore, the operational cash flow has improved by € 75 million from € 52 million negative to € 23 million positive. Positive cash flow is also expected for the whole of 2004. Heijmans expects earnings before interest and taxes for the whole of 2004 to be somewhat higher than the level of € 112 million projected earlier this year. Net profit is expected to be approximately € 65 million, at the higher end of the earlier prognosis of between € 60 and € 66 million. Profit per share will thus amount to approximately € 2.60. These expectations take no account of any consequences of investigations being carried out by the Public Prosecutor and the Netherlands Competition Authority into irregularities in the sector.