Bauer still in profit as sales dip

Bauer has seen a -5,4% decrease in group sales in the first half of 2009 to € 681 million compared to € 719,5 million during the same period last year.

Meanwhile, pre-tax profits totalled € 44, 9 million, representing a fall of - 7,3 % relative to the previous quarter and down -29,2 % against the same period in 2008.

The Group's construction segment is currently "the key pillar of the business" said a statement. Despite sales in the first six months of 2009 declining by -17,2% to € 279,4 million - compared to € 337,6 million during the same period the previous year - the division saw pre-tax profits increase by + 0,7% to € 12,9 million.

The recently established resources segment achieved strong growth through the first half of the year with sales increasing by more than a third to € 71,2 million. Key drivers of this sector include the mining industry and new orders for water well engineering materials.

Bauer said the toughest market conditions are being witnessed in its equipment segment. At the half-way point of 2009 the order backlog fell by - 72,5% to € 81,1 million, compared to € 294,9 million during the same period last year.

Sales in the equipment segment during the first six months remained stable at € 372,3 million - up + 1,8 % from € 365,7 million in 2008. However, pre-tax profits for the first half of the year showed a decline of -35,2 % totalling € 33,1 million compared to € 51,1 million in 2008.

Bauer's chairman, Thomas Bauer said, "We are deploying major efforts to cut costs on a massive scale, and we are currently tendering for a significant number of interesting projects. If such major projects are implemented, they may well deliver a rapid boost to contractors."

Bauer forecasts total Group sales of around € 1,3 billion for the full year compared with € 1,5 billion in 2008.

In the statement the company said, "Although the resources segment is not yet of the necessary size to compensate for market declines in the other divisions, the forecast substantial growth in sales and improvement in earnings signifies a highly positive development for the Group."