Budimex's Q3 results surprise

Construction group Budimex pleasantly surprised the market last week with its Q3 results. The group saw a consolidated net profit of zł.27.2 million, compared with zł.1.2 million a year earlier, and its net profit for Q1-Q3 amounted to zł.73 million, versus a zł.1.19 million net loss in the same period in 2007.

Consolidated revenues in the third quarter amounted to zł.964 million, compared with zł.888 million in Q3 of 2007.

"We are filling in the gaps [in profit] with a growing number of attractive infrastructure contracts. In October alone, we signed contracts worth over zł.800 million," Marek Michałowski, president of Budimex, told Puls Biznesu.

Budimex Group divides its operations into two basic segments: construction-sector activities, and developing and real estate management activities. The former accounted for 68 percent of its operational results in the Q1-Q3 period, while the latter comprised 32 percent. In contrast, during the same period of 2007, operational results from developing and real estate management were far higher.

The share structure of Budimex is dominated by Valivala Holdings, a company of the Ferrovial Group, which holds a stake of around 59 percent. BZ WBK Asset Management has over 14 percent of shares, with the remaining 26 percent held by other shareholders.

Budimex Group comprises a number of dependent entities, including Budimex Dromex, MK Logistic, and Budimex Nieruchomości.