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| Bilfinger Group announces interim results Q3 2014 German industrial services and building firm Bilfinger said its business development in the first nine months of 2014 was affected by the difficult situation in the European power-plant sector and a general reticence to invest on the part of the process industry. While output volume remained stable at €5,631 million, orders received declined due to the development in the Industrial and Power business segments by 9 percent to €5, 123 million. The order backlog of €6, 133 million was 5 percent lower than a year earlier. Earnings significantly below prior-year period Adjusted EBITA for the first nine months of the year of €161 million remained significantly lower than the figure of €264 million achieved in the prior-year period. This was primarily the result of the very negative development at the Power business segment. The reasons for this included the lack of capacity utilization in several areas, above all in high-pressure piping, and negative effects from a number of projects. Earnings declined at Industrial as well, due especially to the difficult situation in the European process industry and the impact from a lack of power plant projects. In the Building and Facility segment, however, EBITA increased as a result of acquisitions and organic growth. Due to the difficult market environment, a fundamental reassessment of the situation was necessary in the Power business segment. Because of the considerably worsened market situation – especially in Germany and other European countries – not only has the earnings forecast for 2014 had to be reduced in this segment, but the earnings outlook for the subsequent years has also had to be significantly adjusted. This triggered an impairment test of goodwill in the divisions of the Power business segment and led to impairment losses of €148 million. This resulted in a negative EBIT of €114 million. The net loss for the period amounted to €125million (previous year: profit of €116 million); adjusted net profit from continuing operations amounted to €103 (previous year: €157). The adjustments relate to: Goodwill impairments at the Power business segment (minus €148 million) The write-down of investments in a production site in Poland for steel foundations for offshore wind turbines (minus €30 million) One-time expenses in connection with Excellence, the efficiency-enhancing program (minus €35 million) Restructuring expenses in the Industrial and Power business segments (minus €20 million) A write-down of deferred tax assets on tax-loss carryforwards due to Cevian Capital increasing its equity interest to above the 25-percent threshold (minus €12 million) A capital gain on the reduction of the investment in Julius Berger Nigeria (plus €9 million) Confirmation of forecast for adjusted EBITA and adjusted net profit in 2014 The Bilfinger Group's output volume in the full year will be in the magnitude of the previous year (€7.7 billion). Bilfinger anticipates adjusted EBITA from continuing operations of at least €270 million (previous year: €419 million). Accordingly, adjusted net profit from continuing operations of at least €160 million is expected (previous year: €255 million). The above-mentioned special items will amount to approximately minus €230 million after taxes and minority interest in 2014, which will lead to a net loss for the year. write your comments about the article :: © 2014 Construction News :: home page |