The net income of the Budimex company for selling its products, goods and materials in the first half of the current year amounted to about 2884 mln PLN. In a parallel period last year, it amounted to about 2249 mln PLN. This rise is related mostly to a sale increase in the building sector. In spite of the income increase, Budimex has noted a substantial drop of its profit; 101 mln PLN in the first half of the current year (in comparison with 145 mln PLN last year).
According to the commentary of Dariusz Blocher, President of the company, this decrease results from additional costs and reserves connected with the restructuring of the Infrastructure Repair Company (Przedsiębiorstwo Naprawy Infrastruktury), which amounted to 30 mln PLN. (PNI is a company working on railway infrastructure on the Polish market; Budimex bought the company from PKP SA in the second half of the previous year). Apart from that, the smaller profit was influenced also by the lower sale of flats as well as a hard-to-predict increase of implementation costs of road contracts. In 1st half of 2012, Budimex Group, taking into account a careful approach concerning possibilities of settling the differences decreasing a basis for calculating an income tax, did not recognize assets on the account of the deferred income tax in the amount of 12 mln zł, which influenced the decrease of the Group’s net result in the same amount, adds Dariusz Blocher.
The decrease in sale in the development sector is related to the big share of the Kraków and Poznań markets in sale. Prices of offices are much lower than on the Warsaw market, which was completely responsible for sale in the first half of 2011.
Dariusz Blocher comments the status of Budimex contracts: In 1st nalf of the current year Budimex SA signed contract in the amount of 921 mln zł, whereas in the parallel period of 2011, in the amount of 2,9 bn zł, which results from our care for the “healthy” wallet and a very selective approach to contracts and offering. The orders received by the group at the end of June 2012 amounted to 6,9 bn zł. However, we are currently expecting to sign additional contracts for 1,3 bn zł (on the basis of tenders in which offers of the Budimex Group companies got the first places).