Bilfinger posts drop in profit

The German engineering group said its results reflected the ongoing difficult economic environment in the energy market and in the European oil and gas sector, as well as additional project burdens, including a loss on a project in South Africa.

For the first half, net profit fell 19% to €55 million compared to the first half of 2013. Adjusted earnings before interest, tax and amortization (EBITA) stood at €111 million down 26% compared to first half 2013.

Bilfinger’s first-half revenues grew to €3.65 billion from €3.58 billion a year ago. Order backlog as at June 30, 2014, was €6.39 billion, 2% lower than at the same point in 2013.

For the second quarter of 2014, net profit of €47 million remained flat compared with last year. EBITA was down 32% at €63 million while adjusted EBITA dropped 30% to €65 million. Quarterly revenue sat at €1.930 billion slightly lower than prior year's €1.945 billion.

Bilfinger said it expects a stronger second half, as it initiates cost-reducing efforts. However, the company still expects to post lower earnings than in 2014. Its year-end forecast now stands at an adjusted EBITA of between €340 million and €360 million, compared to €419 million last year. Adjusted net profit is forecast at €205 million to €220 million, in comparison with €255 million in 2013.

Following its recent profit warning, Roland Koch stepped down from the office of chairman of the executive board. Herbert Bodner has been appointed interim chairman of the executive board until May 31, 2015.