Strabag SE (STR), central Europe’s biggest construction company, will raise its dividend after revenue and sales gained from Poland’s “booming” construction sector,’’ the company said today in an e-mail.
Net income climbed 27 percent to 239.3 million euros ($314.7 million) as sales increased 11 percent to 13.7 billion euros. Analysts had forecast net income of 188 million euros and sales of 13.6 billion euros, according to estimates collected by Bloomberg.
“The growth is due to the strong demand in the German building construction and civil engineering segment, the booming Polish construction sector above all in the field of transportation infrastructure and the expansion in northern Europe,” according to Strabag’s statement.
Government austerity programs to combat the European debt crisis may cut into Strabag’s future earnings, the company said. Output in 2012 will remain unchanged at about 14.3 billion euros. An earnings before interest and tax forecast in excess of 300 million euros is “more than ambitious,” the company said. Ebit was 334.8 million euros in 2011.
Strabag seeks to raise its dividend to 60 cents after paying out 55 cents a share last year. Shareholders will decide on the measure at the company’s annual general meeting June 15.
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