The chief executive of the Netherlands’ biggest building company BAM has resigned after the company posted a first half loss of €6.6m.

BAM issued a profit warning in July saying it would make a loss on several large infrastructure projects. The Dutch construction sector has been hit hard by the economic crisis, especially the downturn in house building.

Nico de Vries (63) will leave the company next April after 38 years and will step down as CEO in October. He will be succeeded by Rob van Wingerden who is already a member of the board.

BAM was hit hard on the stock exchange on Wednesday after a report by Kempen & Co analysts described the company’s debt as a ticking time bomb.