Bilfinger Berger services grow

14 February 2011

Bilfinger Berger's earnings doubled in 2010, although it reported that there was a volume reduction in the construction business segment, with output volume, orders received and order backlog scaled back.

The German-based multi-service group's preliminary figures for the year showed that its overall output volume, orders received and order backlog grew. The group said that the share accounted for by the services business grew to around +80%.

EBIT (earnings before interest and taxes) rose to € 343 million, up from € 173 million in 2009. The group said that this was +98% higher than the year before which had been burdened by provision for a highway project in Doha, Qatar.

Net profit doubled to € 284 million from € 140 million the previous year, and Bilfinger said all business segments contributed to the increase in earnings.

In the building and facility services business segment, output volume and orders received decreased as a result of the systematic reduction in the volume of building construction. The segment's EBIT increased to € 80 million from a 2009 figure of € 58 million.

Bilfinger said that the systematic volume reduction was also reflected in the construction business segment. It said output volume, orders received and order backlog were scaled back. At the same time, EBIT improved to € 31 million, compared to € -73 million a year ago - but it again pointed to the Doha Expressway project provision in 2009.

Looking ahead to 2011, Bilfinger said it forecast "substantially higher" net profit. Output volume in the construction business segment would be scaled back to the level planned, it said. As a result of an improved risk structure, it said it expected a further increase in EBIT.

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