Bilfinger lowers outlook

Bilfinger SE has lowered its outlook for 2014, saying that it will not achieve the significant increase in earnings projected for the year, but it said that its medium-term margin goals were achievable.

The German engineering and services group has said that its power business segment is suffering most, feeling the effects of the energy transformation in Germany, as the country shifts focus from nuclear and fossil fuels to renewables.

Bilfinger’s industrial business segment, particularly the oil and gas sector, is also being hit by cost cutting and maintenance work.

As a result, Bilfinger now expects a decrease in earnings with an output volume of approximately €7.9 billion, compared to €7.7 billion in 2013. An adjusted EBITA (earnings before interest, taxes and amortization) figure of between €380 million and €400 million is forecast, down from €419 million in 2013.

Adjusted net profit will be between €230 million and €245 million, a slight decrease on €255 million for 2013.