Growing demand for its construction services has helped Bauer to offset the drop in revenue from its equipment business to record a 5.4% increase in revenue to €1.06bn (£850M) for the first nine months of the year.
Based on these results, Bauer has said that it expects turnover and profits in the final quarter of 2012 to be in line with previous forecasts to deliver a full year turnover of £1.2bn and post-tax profits of between £16M and £20M.
During the first nine months of the year, demand on large-scale projects helped to grow revenues in the construction division by 11.4% to £388M and pre-tax profit by 62% to £12.9M. However, revenues from the equipment division fell by 5.2% to £356M and pre-tax profit was also down 40% to £16M due to lower demand in China and the Middle East, as well as some regions in Europe.
“The general trend for the global construction market is slight growth,” said Bauer chairman of the management board Thomas Bauer. He added that the company’s prospects are bright looking to the year ahead and pointed to a 7.4% rise in orders in hand.
The company has said that it expects to gain a competitive edge from its broad product range and development of new machines and techniques focused on complex specialist construction works. “However, the financial crisis and its consequences have not yet been overcome – as we are seeing in our equipment segment,” said Bauer. “We are continuing to plan for growth of between 5 and 10% in total roup revenues over the coming years. Based on current forecasts, our earnings will pick up again from 2013 onwards.”