Consortium reviewing alternative possibilities to prevent pay-out of guarantee
Outlook: operating EBIT margin of STRABAG Group for 2018 confirmed
Vienna/Milan, 6 December 2018---The legal dispute involving a consortium led by Austria's STRABAG AG in connection with the Pedemontana motorway project in northern Italy led the client earlier this year to invoke a guarantee. The consortium sees this invocation as unjustified and on 15 March 2018 filed a request with the competent court in Milan to issue an injunction against this recourse.
The request has now been denied in a written decision that was served today. The consortium will lodge an appeal against this decision and will review alternative possibilities to prevent the guarantee from being paid out.
In the event that the guarantee amount of up to about € 260 million has to be paid out temporarily, the consortium believes that a claim for restitution exists that is to be capitalised in full. This claim is (also) to be asserted in the pending legal disputes related to the construction delays and the accompanying considerable cost overruns. The pay-out of the guarantee will not influence the legal position of the consortium in these pending court proceedings.
In this context, STRABAG confirms its forecast of an EBIT margin of at least 3.3 % from the operating business for the 2018 financial year.STRABAG SEis a European-based technology group for construction services, a leader in innovation and financial strength. Our services span all areas of the construction industry and cover the entire construction value chain. We create added value for our clients by our specialised entities integrating the most diverse services and assuming responsibility for them. We bring together people, materials and machinery at the right place and at the right time in order to realise even complex construction projects - on schedule, of the highest quality and at the best price. The hard work and dedication of our close to 73,000 employees allow us to generate an annual output volume of more than € 14 billion. At the same time, a dense network of numerous subsidiaries in many European countries and, also, on other continents is helping to expand our area of operation far beyond the borders of Austria and Germany. More information is available atwww.strabag.com.
Strabag SE published this content on 06 December 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 06 December 2018 15:06:11 UTC