Bilfinger positive despite slow start

German contractor Bilfinger reported declines across the board with its fiscal first quarter results. Output volume fell 4% year-on-year to €1.9 billion and orders received were down 8% to €2 billion.

However, despite those decreases, orders received were more than €100 million greater than output volume for the period.

The firm’s order backlog at the end of the first quarter amounted to €7.6 billion, 6% lower than a year earlier.

Earnings before interest, taxes and amortisation (EBITA) also fell in the first three months of the financial year to €56 million, compared to €68 million for the same period in 2012.

Net profit amounted to €29 million, down from €42 million in last year.

According to Bilfinger, which generates 80% of its output volume in Europe, “the continued lack of economic impetus in Europe is leading to hesitation on the part of clients. This results in delays in contract awards, with primarily larger-volume and high-margin projects affected.”

However, beyond central Europe, the company reported steady demand in Scandinavia, the UK and the US, and remains confident that the global economy will expand and business will improve by year-end.