Keller has said in its latest interim management statement that it expects to meet its predicted full year turnover of £1.3bn but has said that pre-tax profit is likely to be significantly above previous market expectations.
The company has said that its improvement in profits is based on a strong performance over the last four months, which exceeded the expectations of the managing board. Most of the gains come from the North American and Australian markets but Keller said that actions taken in the Europe, Middle East and Africa (EMEA) region in the first half of 2012 will result in an improved performance in the last six months of the year.
Changes in the EMEA business include cutting costs and restructuring business to a size and structure “commensurate with their depressed markets”. According to the statement, these results of these measures, together with good progress on major infrastructure projects in the UK and Poland will be seen in the second half results.
Looking further ahead, Keller has said that at a macroeconomic level the outlook remains extremely uncertain. “Europe continues to face a number of economic and political challenges, while the rate of growth in much of Asia appears to be slowing,” said the company. “In the US, where the construction market and economy as a whole are in the early stages of recovery, this recovery is threatened by the “fiscal cliff”.
“Despite this backdrop, the board believes that corporate actions taken in recent years mean that the group is better placed than ever to face whatever economic headwinds may materialise. Longer term, we remain confident that our strategy and our strengths will underpin sustained future growth.”