BAUER AG: Start of the year in line with expectations and considerably improved order situation compared to the previous year

At EUR 356.6 million, total Group revenues were below the first quarter of 2020 (EUR 390.2 million) due to the COVID-19 pandemic
EBIT with EUR 1.8 million correspondingly below the previous year's value (EUR 8.5 million)
Very significant increase in order backlog by 21.0% to EUR 1,322.1 million (previous year: EUR 1,092.7 million)
Forecast 2021 confirmed

Schrobenhausen, Germany – The BAUER Group started off 2021 in line with expectations. Compared with the first quarter of 2020, which was not yet influenced by the COVID-19 pandemic, the company reported a decrease in total Group revenues by 8.6% to EUR 356.6 million (previous year: EUR 390.2 million). Accordingly, earnings before interest and tax (EBIT) at EUR 1.8 million (previous year: EUR 8.5 million) remained within the range of expectations.

The order situation performed very well. Compared to the same period of the previous year, the Group’s order backlog increased significantly by 21.0% to EUR 1.3 billion; this corresponds to an increase of 13.7% compared to the end of 2020. The Construction segment, in which very large order volumes were commissioned, contributed decisively to these results. The Equipment segment was also able to increase its order backlog. The Group’s order intake in the first three months of 2021 increased by 13.4% to EUR 516.1 million (previous year: EUR 455.2 million).

Business segments

With its three segments – Construction, Equipment and Resources – and a broadly diversified business model, Bauer addresses major global trends such as rapidly progressing urbanization, infrastructure expansion, water extraction and treatment as well as increasing environmental awareness.

In the Construction segment, Bauer has an extensive portfolio of specialist foundation engineering technology and many years of expertise. At EUR 169.7 million, total Group revenues in the segment in the first quarter of 2021 were on a par with the previous year (EUR 167.0 million). In line with the development of total Group revenues, EBIT also remained stable at EUR -0.2 million compared to the previous year (previous year: EUR 0.2 million). Order backlog in the Construction segment increased considerably by 39.2% to EUR 825.1 million (previous year: EUR 592.6 million). Among others, larger projects were commissioned in Europe, Jordan, India and Egypt in the first quarter of 2021. At EUR 273.4 million, the order intake rose very significantly by 84.0% compared to the previous year’s EUR 148.6 million.

As one of the leading technology providers worldwide, Bauer develops and sells innovative equipment for specialist foundation engineering in the Equipment segment. The total Group revenues in the segment fell by 7.2% to EUR 152.0 million in the first quarter of 2021 compared to the previous year (previous year: EUR 163.8 million). This is primarily owing to the fact that the first quarter of the previous year was not yet affected by customers’ reluctance to invest, resulting from uncertainty caused by the COVID-19 pandemic. EBIT decreased compared to the previous year, from EUR 3.8 million to EUR 0.5 million. Although the Equipment segment continues to be affected overall by customers’ reluctance to invest, the order situation performed well. Order backlog increased by 16.8%, from EUR 130.7 million in the previous year to EUR 152.7 million. At EUR 185.8 million, order intake was on a par with the same period of the previous year (EUR 186.2 million).

The Resources segment delivers innovative products and services in the areas of drilling services and water wells, environmental services, constructed wetlands, mining and rehabilitation. Total Group revenues after the first quarter of 2021 decreased by 21.7%, from EUR 80.7 million in the previous year to EUR 63.2 million. This was largely because the previous year’s figures include the major Kesslergrube project. EBIT fell from EUR 4.0 million in the previous year to EUR 2.1 million in the current reporting period. The order backlog in the first quarter of 2021 was below the previous year, also due to the major Kesslergrube project. This totaled EUR 344.3 million (previous year: EUR 369.3 million), while order intake amounted to EUR 85.2 million (previous year: EUR 141.8 million).

Outlook

“The first quarter of 2021 went according to our expectations. While the Resources segment is not significantly influenced by the COVID-19 pandemic, some of our business activities in the Construction and Equipment segments continue to be affected. At the same time, we are pleased to report positive signals in the order situation. Here we were able to make significant gains compared to the previous year. In 2020, we implemented numerous measures to sustainably increase our profitability. As a result, we are optimistic overall about the course of business for the rest of this year,” says Michael Stomberg, CEO of BAUER AG.

Given the background of the ongoing pandemic and the difficulty of predicting further effects in the current financial year, the Management Board continues to anticipate total Group revenues of between EUR 1,550 million and EUR 1,650 million and EBIT of between EUR 75 million and EUR 85 million for the Group in the 2021 financial year.