The Tauw Group turnover outside of the Netherlands increased by 8.7% in 2011. This continues the upward trend shown in 2010. Turnover in the Netherlands decreased by 7% in 2011 due to government spending cuts. This caused the total operating results to decrease from € 117.1 million to € 113 million.
The operating results fell from € 3 million to € 1.6 million. The downturn was due to both a decrease in operating results and losses sustained in Tauw subdivisions in the Netherlands.
In early November 2011 the Tauw Group management decided to reorganize the Dutch organization with the main objectives being to simplify the organization, accelerate the decision-making process and structurally improve profitability. The complex structure consisting of a combination of offices, sectors and business units has been converted into a uniform structure with three business units: Water, Industry and Natural & Built Environment.
CEO Bram de Borst expects that the Dutch market for government assignments will remain tough in 2012 and will even show a downward trend. De Borst: “In the Netherlands Tauw is largely dependent on the government market. In contrast, we see growth opportunities in other sectors including the international industrial sector. Consequently our main objective is to maintain the total turnover of the Tauw Group at the 2011 level. In 2012 investments in innovation and product development will also be kept at the high level of 3% of the operating results.”
The 2011 Tauw Group annual report has been published online at www.tauw.com/annualreport.