Implenia expects lower profit

According to Implenia, a review of the Group's business and economic risks shows that the problems in the International segment have intensified and accelerated. Therefore, the targets communicated in August would have to be revised. At that time, the company put the expected Ebit of the business units for 2018 at around CHF 130 million.

Management now expects impairment charges totaling 70 to 90 million for fiscal 2018. This is due to valuation adjustments and lower earnings from ongoing business in parts of the International segment. As a result, cash flow in 2018 is expected to be below previous expectations. The International segment had closed the first half of 2018 with a loss. In August, it was said that the segment was not yet meeting expectations and that the hoped-for break-even would not yet be reached in the current year.

Meanwhile, the Development, Switzerland and Infrastructure segments would develop in line with expectations, Implenia said. "In view of an unchanged good cash position and the high order backlog of over six billion," the construction group continues to assume that it will be able to propose the distribution of a dividend to the 2019 Annual General Meeting. The company is also sticking to the medium-term targets communicated in spring 2017, with a top-line volume of around five billion and an Ebitda margin of between 5.25 and 5.75 percent.

The review is part of the further development of the corporate strategy initiated by Implenia's new CEO André Wyss immediately after taking office in October 2018. The results are to be communicated on 26 February 2019. (ah)