Bauer AG remains on Course after the third Quarter

  • Total Group revenues rose by 22.0% to EUR 1,398.1 million; sales revenues increased by 27.5% to EUR 1,265.6 million
  • Total Group revenues rose by 22.0% to EUR 1,398.1 million; sales revenues increased by 27.5% to EUR 1,265.6 million
  • EBIT improved to EUR 48.9 million (previous year: EUR 38.0 million) and earnings after tax to EUR 6.9 million (previous year: EUR -4.0 million)
  • Order backlog with EUR 977.3 million at high level (previous year: EUR 1,019.0 million)
  • Forecast for 2017 confirmed

The Bauer Group remains on course after the third quarter of 2017. The key figures of the international construction and machinery concern are well above the previous year's level after nine months.

The total Group revenues recorded a plus of 22.0% to EUR 1,398.1 million (previous year: EUR 1,146.3 million). Sales revenues grew by 27.5% to EUR 1,265.6 million. EBIT improved from EUR 38.0 million to EUR 48.9 million. Earnings after tax were EUR 6.9 million (previous year EUR -4.0 million). The order backlog with EUR 977.3 million is at a high level (previous year: EUR 1,019.0 million). A high double-digit million order backlog was taken off the books after the sale of shares in a real estate company at the end of 2016. Without this effect, the orders in hand were higher than the previous year's level.

Business 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 three segments have developed differently over the course of the year: while Construction and Resources remained behind expectations with their earnings, the Equipment segment was able to demonstrate a significant increase.

In the Construction segment, extensive projects were processed and the capacity utilization distributed evenly across the globe. This ensured that the total Group revenues rose by 29.1% to EUR 666.5 million. EBIT dropped from EUR 12.6 million to EUR 7.3 million and is consequently below expectations. The reason for this are several unsatisfactory projects in Germany and Australia as well as negative exchange rate effects. The order backlog is still at a high level with EUR 516.5 million, albeit EUR 61.5 million lower than the previous year's figure. If the aforementioned derecognized order backlog is taken into consideration, the figure is above the previous year's level.

The Equipment segment is benefiting from an excellent order intake, meaning that total Group revenues increased by 24.3% from EUR 465.7 million to EUR 579.0 million. Sales revenues rose by 39.0% to EUR 480.8 million. EBIT more than doubled from EUR 22.8 million to EUR 46.7 million and is therefore significantly higher than expectations. This was ensured by the fact that significantly more equipment was sold this year than in the previous year and also by the fact that sales of large machinery and specialist equipment increased. Consequently, the ratio between the fixed costs and sales improved. Orders in hand grew slightly from EUR 150.6 million to EUR 153.1 million, the order intake grew by 20.5% from EUR 488.2 to EUR 588.1 million.

The Resources segment with its forward-looking environment, water and natural resources business has good prospects in the medium term. It is currently being hindered by the slow recovery of the raw material markets and by other required reorganization measures. Total Group revenues with EUR 193.5 million are 5.8% down year-on-year (EUR 205.4 million). EBIT amounted to EUR -5.3 million (previous year: EUR 3.4 million). The segment's order backlog is up by 6.0% to EUR 307.7 million. In the environment business, the company is expecting the contract for a large project in the Middle East in the fourth quarter.


All in all, the company confirms its forecast for the year as a whole, which it had slightly raised in August with respect to total Group revenues. Accordingly, the company is predicting total Group revenues of around EUR 1.8 billion, earnings after tax of around EUR 23 to 28 million, and EBIT of around EUR 75 million.

"We are seeing an overall positive trend in our business operations," states Prof. Thomas Bauer, Chairman of the Management Board of Bauer Aktiengesellschaft. "The Construction segment is showing continued stable growth worldwide and the demand for complex specialist foundation engineering projects will continue to grow due to the continuing urbanization and the rising complexity of infrastructures." Due to the sharp increase in business in the current fiscal year, he is anticipating a slight decline in revenues from today's perspective for the Construction segment in 2018. "The construction machinery market is currently recording significant growth and offers short and medium-term opportunities", Bauer continues. He attributes this to the fact that the excess capacities in the machinery market were reduced and the investment backlog is being alleviated. For the Resources segment, he sees a positive development, if the raw material prices continue to stabilize and the reorganization measures take full effect.

Source: Bauer AG

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