Bauer has adjusted its full year forecast for 2013 to a net loss following construction and payment difficulties on a well construction project in Jordan.
The impact of the project and a poor performance in the third quarter has led Bauer’s construction divison to reduce its earnings forecast by €20M (£17M) that is expected to result in EBIT revenues of €25M (£21.4M) and a loss of €20M (£17M) for the full year.
The company has said that is expects forecast revenues for the total group for the full year to remain unchanged at €1.5bn (£1.3bn). Nonetheless, it has said that the loss means that covenants net debt to EBITDA agreed with banks and some long-term loans could not be met but it is hopeful of finding an acceptable solution with its business partners.
Bauer has said that is responding to the news of the predicted loss by initiating a cost cutting programme which will include withdrawal from some “minor, economically challenging” operations.
Bauer is expected to publish the final figures for the first nine months of 2013 on 14 November.