BAM results hit by Dutch property market

Grant Prior 12 years ago
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BAM is expected to only break even this year after taking a €177m hit on its Dutch development and housing business.

The construction giant confirmed today that the rest of the business – including its extensive UK operations – is “exceeding expectations.”

Bam will announce its results for the first nine months of 2010 on November 18.

But the firm said today that the Dutch residential market will drag its numbers down.

A company statement said: “BAM acknowledges that the outlook for the Dutch residential market is increasingly gloomy. The number of projects that have been postponed or discontinued is increasing.

“In response to the developments mentioned above, which have only intensified in recent months, BAM has taken a €127 million charge for the impairment of the property positions of the Dutch property development firm AM.

“In addition, AM will achieve an operational loss of approximately €50 million due to disappointing sales and sales proceeds, the writing down of planning costs and insufficient overhead coverage.

“As a consequence of the measures outlined above, AM is expected to report a pre-tax loss of approximately €177 million for all of 2010. The BAM Executive Board has every confidence that AM will generate a modest, positive result in 2011.

“Development in the results of the other sectors is exceeding expectations. BAM is expected to report a break-even net result for all of 2010.”

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