MT Højgaard reaffirms outlook for 2010

As expected, the hard winter coupled with the economic climate led to a weak first quarter for MT Højgaard, and both revenue and results lagged behind last year’s first quarter.

Consolidated first-quarter revenue was DKK 1.8 billion compared with DKK 2.1 billion in the corresponding period in 2009, down 17%. However, the decline was predominantly a consequence of the unusually hard winter, which resulted in many projects being put on hold for extended periods of time. This trend characterised the entire industry.

As assumed in the 2009 annual report, the first quarter of the year was weak, and profit before tax was DKK 6 million compared with DKK 83 million in the first quarter of 2009 and DKK 307 million for the full year.

- Our financial statements for the first quarter are as expected. The results reflected the combination of the very cold and protracted winter and the current economic climate, which characterised the entire industry and also many other sectors. Our employees have been adept at making the most of the situation, but have been unable to prevent a decline in revenue and results, says President and CEO Kristian May, commenting on the financial statements.

- Now in spring and this summer we are busy trying to recover as much time as possible in relation to our timetables. We are maintaining our strong financial position, and, not least in difficult times, it is important for our customers, suppliers and other business partners that we are financially strong, says Kristian May.

Consolidated equity was DKK 1.6 billion at the end of March, corresponding to an equity ratio of 32%, and financial resources were DKK 1.4 billion.

Outlook for 2010 reaffirmed

MT Højgaard still expects full-year 2010 revenue to reach approx. DKK 9 billion and a pre-tax margin of 2% to 3%.

- 2010 is an interesting year, with many good opportunities and challenging projects. We are still focusing on the international markets, including the start-up of a large offshore project off the UK coast, the commencement of a waste water treatment plant in Bangladesh, and the completion of a bridge in Södertälje in Sweden. In addition, we are continuously developing our Danish construction business. For example, we have opened offices in Randers and Sakskøbing, says Kristian May.

Financial highlights from financial statements

DKK million	Q1 2010	Q1 2009	2009
Revenue	1.758	2.116	9.087
Operating profit (loss) (EBIT)	-3	73	290
Profit before tax	6	83	307
Cash flows from operating activities	75	443	485
Equity	1.616	1.502	1.610
Interest-bearing net deposit	895	898	824
Invested capital	816	684	880
EBIT margin	-0,2%	3,4%	3,2%
Pre-tax margin	0,3%	3,9%	3,4%
Equity ratio	31,5%	28,4%	29,2%