First half year results for 2008 show satisfactory progress - 08/28/2008

First half year results for 2008 show satisfactory progress
Despite a 9% decline in revenue, MT Højgaard came out of the first half year with better results than the first half of 2007. The revenue decline on the Danish market is partially counterbalanced by increased activities abroad.

MT Højgaard came out of the first half of 2008 with a satisfactory profit despite a decline in revenue compared to the first half of 2007. Profit before tax for the first half of 2008 was DKK 176 million, up DKK 73 million on the same period in 2007. Revenue for the first six months was DKK 5.4 billion, 9% lower than the corresponding period in 2007. There was a significant improvement in profit margin - 3.3% for the first half of 2008, compared to 1.7% for the same period last year.

Better results than in 2007
"Our profit for the first half of 2008 is satisfactory. It is higher than for the same period last year, although our revenue is lower. At MT Højgaard we have initiated a number of procedures in the last 18 months to improve our risk management and profitability – and this is positively reflected in the results," says CEO Kristian May. The revenue decline came as no surprise to MT Højgaard. "In the last couple of years, we have experienced extraordinarily high activity in the market, which is now returning to a more normal level", says Kristian May.

Activities abroad generate 25% of revenue
Part of the decrease in activities on the Danish construction market is counterbalanced in MT Højgaard by a modest increase in activities abroad. "We have increased our activities abroad through selective choosing of project opportunities in relation to our competences and resources. We have an acceptable activity level today in for example offshore wind turbine foundations, and building and civil works projects in the North Atlantic area", says Kristian May, who continues to expect that revenue abroad will account for around 25% of the group's total revenue in 2008, compared to 21% in 2007.

"It is satisfactory that we can use our competences and resources abroad when the Danish building and construction market is experiencing a downturn. We are seeing the largest downturn in private residential building and an unusually low level of construction activity in the housing association segment", ends Kristian May.

Unchanged expectations for 2008
At the end of the first half of 2008, MT Højgaard had an order book worth DKK 10.7 billion, which is on a par with the order book at the end of 2007. MT Højgaard continues to expect revenue to be in the region of DKK 11 billion for 2008, and profit before tax in the region of DKK 300 million.

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