Strabag order backlog breaks € 13 billion

Strabag's order backlog grew +23% in 2008 to a record € 13,2 billion. Sales were up +24% to € 12,2 billion, up from € 9,8 billion in 2007, but pre-tax profits fell -14% to € 270 million, down from € 312 million the previous year.

The fall in pre-tax profits was attributable to higher depreciation and amortisation charges relating to acquisitions and extraordinary charges, including € 25 million for impairment on goodwill.

"Despite the lower profit, my management board colleagues and I lend support to our conviction that Strabag - in terms of both its liquidity and expected future profits - is a stable company," said Hans Peter Haselsteiner, CEO of Strabag SE.

Sales in Central and Eastern Europe grew +24% to € 12 billion which represented 31% of the Austrian company's overall revenues. Construction and civil engineering growth was particularly high in Russia where sales grew +83% to € 464 million and Slovakia where growth of +55% took revenues to € 352 million.

Talking about the order backlog, Mr Haselsteiner said, "The development of the growth market of Poland is particularly worth mentioning. Totalling € 1,1 billion in 2008, the backlog more than doubled over the previous year."

In the building construction and civil engineering segment of the group, organic growth of +8% saw sales of € 5,8 billion with Russia and Slovakia leading the way and Germany also reporting a +5% increase to € 1,9 billion.