Construction firm Royal BAM posts revenue fall on inflation, supply chain woes (updated)
03/11/2022 07:25
(Adds detail, context)
Nov 3 (Reuters) - Dutch construction company Royal BAM
Group BAMN.AS on Thursday posted a fall in its 9-month
revenue, citing the impact of inflation, supply chain issues and
some delays.
The firm, which operates in the Netherlands, the United
Kingdom, Germany, Belgium, Ireland and elsewhere, reported
revenue of 4.92 billion euros ($4.83 billion), down 8% year on
year.
"We continue to face industry-wide pressure in the supply
chain, cost inflation and high competition to attract and retain
employees," CEO Ruud Joosten said in a statement.
However, he said the group was able to mitigate most of
these headwinds through sourcing arrangements, contract terms
and pricing.
The group said its order book remained solid at 10.0
billion euros, but had fallen due to divestments and a UK
government review of a regional roads development programme.
Regarding a Dutch
investigation
into potential irregularities at some completed projects of
its subsidiary BAM International, the group said the timing and
possible outcome of the investigation were uncertain.
BAM confirmed its full-year guidance of an adjusted EBITDA
margin of at least 4%.
($1 = 1.0192 euros)
(Reporting by Federica Mileo in Gdansk; editing by Tom Hogue
and Jason Neely)
((federica.mileo@thomsonreuters.com; +48587785332;))