BAUER AG's nine-month figures are behind expectations

• Total Group revenues are down by 4.1 % to EUR 1,146.3 million;

• EBIT improves by 4.4 % to EUR 38.0 million (previous year: EUR 36.4 million); Earnings after tax are EUR -4.0 million (previous year: EUR -2.7 million).

• The order backlog remains stable at a high level of EUR 1,019.0 million

• The full-year forecast has been corrected.

Following the first nine months of the current financial year the BAUER Group is lagging behind expectations. Today the international construction and machinery manufacturing concern presented its quarterly results after correcting its forecasts in an ad hoc announcement on November 3.

Total Group revenues were EUR 1,146.3 million at the end of the third quarter, down by 4.1 % from the previous year (EUR 1,194.9 million). EBIT increased by 4.4 % from EUR 36.4 million to EUR 38.0 million. Earnings after tax of EUR -4.0 million were down on the previous year (EUR -2.7 million). The reason for this is a somewhat higher level of financial expenses and a slightly negative result from the share of the profit or loss of associated companies using the equity method. The order backlog has remained stable at a high level of about one billion euros. The actual figure at the end of the quarter was EUR 1,019.0 million (previous year: EUR 1,017.6 million). The growth is derived above all from the Construction and Resources segments.

With its three segments - Construction, Equipment and Resources - and its broadly diversified business model, the Group operates through more than 110 subsidiaries in some 70 countries around the world.

The weaker business figures are mainly attributable to the Construction segment. On the one hand, individual subsidiaries abroad have been financially burdened by order shortages. On the other hand, some large-scale projects were delayed, which has had a negative impact on the expected revenues. Total Group revenues were 8.5 % lower year-on-year at EUR 516.4 million. EBIT grew by 1.7 % from EUR 12.4 million to EUR 12.6 million. The order backlog has seen a slight decrease of 1.1 %, but it is still at a very high level of EUR 578.0 million.

Total Group revenues in the Equipment segment decreased by 6.2 % from EUR 496.6 million to EUR 465.7 million. EBIT is EUR 22.8 million, which is 7.3 % less than the previous year's EUR 24.6 million. When comparing the results, it should be considered that there was a special result in the third quarter of the previous year arising from the sale of 50 % of the shares in SPANTEC Spann- & Ankertechnik GmbH and the revaluation of the remaining 40 % of the shares. The consequent year-on-year improvement in the operating result is due, among other factors, to the delivery of some large and special rigs. The order backlog reduced from EUR 159.7 million to EUR 150.6 million. The reason for this mainly lies in the deep drilling rig business. The deep drilling business was integrated into the joint venture with Schlumberger at the beginning of the year; this venture is operated under the name NEORig. It has a good order situation. Order intake for specialist foundation engineering equipment has developed better than in the previous year.

The restructuring measures taken for the reorganization of the Resources segment are starting to bear fruit. Total Group revenues rose by 15.9 % to EUR 205.4 million (previous year: EUR 177.2 million). Major projects in the environmental sector are having a positive effect. EBIT amounted to EUR 3.4 million (previous year: EUR -1.2 million). The segment's order backlog is up by 6.1 % to EUR 290.3 million. The subsidiary in Jordan has also managed to win major orders once again, which has significantly improved its capacity utilization levels.

The company already corrected its forecast for the 2016 financial year as a whole in an ad hoc announcement on November 3. Up to now, total Group revenues of about EUR 1.65 billion, EBIT of about EUR 75 million, and earnings after tax of around EUR 20 to 25 million had been anticipated. The company now expects to achieve total Group revenues of slightly less than EUR 1.65 billion, EBIT of about EUR 65 million, and earnings after tax of around EUR 10 to 15 million by the end of the year.

"Our business operations are being undertaken in a very difficult environment and are influenced by many political and economic hot spots around the world", says Prof. Thomas Bauer, Chairman of the Management Board of BAUER Aktiengesellschaft. "If then the awarding of major projects is delayed unexpectedly, or the start-up phases take longer than planned, it is impossible to compensate these effects in the short term. In positive contrast to this, however, is the good order situation, which is a solid basis for the coming year."