Sales growth in Bauer’s resources division helped to offset declines in its construction and equipment business during the first quarter of the year, according to a financial announcement from the company.
Revenues from the resources business were up 31.9% to €71.5M (£56.4M) compared to the same period in 2015 due to larger projects within the environmental sector.
Nonetheless, the division still recorded a loss of €1.6M (£1.26M) although this was an improvement from the loss of €2.9M (£2.3M) recorded for the same period last year.
Both Bauer’s construction and equipment businesses reported lower revenues for the first three months of 2016 compared to the same period in 2015, however, profits for the equipment segment were up on last year’s figures.
Bauer reported that the some larger projects were delayed in the start-up phase, which resulted in a 17.4% drop in revenues for its construction business for the first quarter to €159.9M (£126M). The company has said that it expects to “make good this deficit over the course of the year” as these projects get underway.
Revenues generated by the equipment business dropped 5.1% to €165M (£130M) but profits increased due to delivery of a number of specialist machines at the start of the year. The company also said that the order backlog for this division is down on the same period last year due to the spin-off of the deep drilling business that has now been integrated in a joint venture with Schlumberger.
The company has confirmed its full-year forecast predicting group revenues of around €1.65b (£1.3bn) and pre-tax profits of €75M (£59M). “We are seeing an overall positive trend in our business operations,” Bauer management board chairman Thomas Bauer. “We should be able to sustainably improve our results again soon.”