Bauer AG, the holding company for the Bauer Group of foundation drilling, construction and manufacturing companies, reported an after-tax loss of $28.9 million (USD) for the third quarter and forecast a loss of about $27 million (USD) for the year.
“The first nine months of 2013 were very unsatisfactory for our Group overall,” said Thomas Bauer , chairman of the management board of Bauer AG. “A number of special effects forced us, for the first time in many years, to report a loss. This will not impact on our earning power over the years ahead however. We are planning for a small amount of growth in 2014, and expect to return to a profit in all segments, enabling overall performance to resume the trend seen in 2012.”
The net loss for the January to September period of $28.9 million compares to an $8.9 million gain for the same period a year ago. Orders in hand offered a bright spot, rising almost 8 percent over the previous year to $1.13 billion.
The group’s construction segment saw 9.4 percent revenue growth, up to $715 million, over the previous year driven by major projects in Russia, Saudi Arabia, Hong Kong and the United States. On the equipment side, revenue climbed 6.6 percent to $640 million of the same period a year ago. The group expressed concern about low margins and overcapacity in the market for large machinery. In the group’s resources segment, revenue tumbled 23.2 percent to $198 million.
A company statement said the group has begun cost-cutting measures in response to the soft financial results. It’s working to cut $27 million across all business units.
Bauer Group offers services, equipment and other products for a variety of foundation drilling and civil engineering sectors. Founded in 1790, the company now employs more than 10,000 people worldwide. For more information, visit www.bauer.de/en.