VIENNA: Austrian construction firm Strabag posted a positive first-half operating profit for the first time ever this year, the company announced Wednesday, citing favourable weather conditions.
"Although the break-even point in the earnings before interest and taxes (EBIT) is reached normally not until the third quarter due to the high seasonality of the construction business, it has already shown a positive 16.67 million euros in the first half of 2011," Strabag said in a statement.
In the first half of 2010, EBIT saw a loss of 10.36 million euros ($14.9 million).
"The first months of the previous year were characterised by a very long winter. This year's weather conditions allowed us to begin building significantly earlier," CEO Hans Peter Haselsteiner explained.
This helped the value of completed work to jump 17 percent to 6.136 billion euros from last year, thanks especially to growth in Poland, Germany and Scandinavia, Strabag noted.
Net loss meanwhile narrowed to 10.94 million euros from 11.47 million euros in January-June 2010, while sales climbed 17 percent to 5.9 billion euros, it said.
On a quarterly basis, net profit remained almost unchanged at 106.6 million euros, from 106.4 million euros in the first quarter.
Operating profit on the other hand rose by 16 percent to 162 million euros, while sales were up 14 percent at 3.7 billion euros.
Backed by its half-year results, Strabag confirmed its full-year forecasts for the next two years, which were raised in May.
Work completed is set to reach 14 billion euros in 2011 and 14.3 billion euros in 2012, while EBIT is pencilled in at 320 and 330 million euros respectively.
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