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Comments for the 3rd quarter 2012

News date: October 29, 2012
Comments for the 3rd quarter 2012

In the third quarter of this year Budimex Group realized sales of 1.697 million zł, about 8% higher than the sales achieved in the corresponding period of 2011, mainly due to the consolidation of revenues PNI.
During the quarter the Group generated operating profit of EUR 53 million zł, gross profit of 76 million and a net profit of nearly 55 million zł, while in the corresponding period of 2011 the operating profit of EUR 92 million zł, gross profit of 92 million zł and net profit of 74 million zł.
The impact on the Group's results for the third quarter of this year due to the consolidation of PNI is a decrease in operating profit, profit before tax and net level of more than 19 million zł (in the same period of 2011, the company was not yet Budimex Group). The decrease also affected the results of lower profitability endless highway contracts, resulting from the significant increase in the cost of road investments (impossible to predict when signing contracts rise in prices of construction materials by approx. 40%).
A positive impact on the height of the gross and net profit in the third quarter of the Group had getting higher than in the corresponding period of 2011 interest on overdue payments and lawsuits.
In the third quarter of this year Budimex Group has signed contracts worth 1.041 million zł, while in the corresponding quarter of 2011, 1.284 million zł, which shows a marked decline in the market value of new contracts as well as our commitment to maintain a "healthy" portfolio and a selective approach to bidding in a highly competitive, decreasing the market.
Order portfolio at the end of September amounted to 6.4 billion zł., while at the end of the third quarter of 2011, 7.7 billion zł. At the moment, however, we are waiting to sign new contracts with a value of 270 million zł (on the basis of tenders, where Budimex Group companies have obtained the first place).
Today, we give 40% more listings than in the corresponding period of 2011, but on a much smaller contract values ??and shorter implementation period. Thus reduce the risk of the effects of inflation on the results, but we compete with other, smaller companies.
In the third quarter of this year development segment reported a nearly 53% increase in sales compared with the same period of 2011. During the quarter, Budimex Nieruchomości sold 130 apartments, while in the same period of 2011 46 units. The lower growth rate of sales in relation to the dynamics of the number of homes sold due to the large share of sales this year, smaller and cheaper apartments.
In the third quarter of this year. Budimex Nieruchomości pre-sold 112 apartments (without reservation), while in the same period last year, 145 units.
The Group's net cash position, including their own cash and short-term securities, less the external sources of funding at the end of September 2012 amounted to 718 million zł, while at the end of the third quarter of 2011, 889 million zł. This decrease is mainly due to the purchase of PNI in November 2011 and the payment of dividends this year in the amount of 280 million zł.
After three quarters:
In the first three quarters of this year Budimex Group realized sales of 4.580 million zł, ie. About 20% higher than the sales achieved in the corresponding period of 2011. Construction and assembly output in the period rose by 1.4%.
At the end of the third quarter the Group generated a profit at the operating level of over 109 million zł, gross profit of 134 million zł and a net profit of nearly 77 million zł, while in the same period of 2011, respectively zł 237 million, 241 million and 194 million zł zł.
After three quarters of this year as a result of the PNI consolidation, the operating profit, gross profit and net profit declined nearly 137 million zł. The decrease in performance compared to the same period in 2011 was also affected by losses on certain contracts Budimex highway. Those losses, however, have created a reserve, and because the implementation of highway contracts coming to an end, I do not foresee more of the losses of cash or accountants.
Excluding the negative impact of PNI, the results of the first three quarters of this year assessed as good and comparable at all levels with the results obtained in the corresponding period of 2011.
After three quarters of this year development segment reported a nearly 40% drop in sales compared with the same period of 2011, despite the fact that Budimex Nieruchomości sold this year 373 apartments, while in the same period of 2011 313 apartments.
In the first three quarters of this year Budimex Nieruchomości pre-sold 322 apartments (without reservation), while in the same period last year, 550 units. Throughout 2012 years expect pre-sale at up to 30% less than in 2011, but at the same time larger than last year's revenues. The decrease is due to the uncertain pre-market situation, change the developers' law, a restrictive credit policy of banks and a decrease in finished apartments offer Budimex Nieruchomości.
With good results growing importance in Budimex Group is acquired by Budimex Danwood, a 100% subsidiary of Budimex SA, which is engaged in manufacturing and installation of wooden houses in frame construction. Noteworthy is also the German market, where Budimex achieved higher margins than in the domestic market.