German contractor Bilfinger has announced plans to sell its troubled Power division. The company has already shed its infrastructure and construction businesses in the face of a string of profit warnings.
The decision to sell the power business came as the company announced yet another profit warning. It said that having brought in internal consultants to help audit the business, it expects the Power division to see earnings before interest, tax and amortisation (EBITA) to come in at a loss of € 100 million this year, compared to a profit of € 8 million for 2014. The division has annual revenues of some € 1.46 billion and employs 11,000 people.
The company said most of the losses would be booked to the first half of this year, and that it would show the Power division as a discontinued business in its half-year accounts. It added that the sale of the Power division was expected to take a year, leaving Bilfinger to focus on its industrial and real-estate activities.
Bilfinger CEO Per Utnegaard said, "With the focus on the Industrial as well as the Building and Facility business segments, we are strengthening our positioning as a leading international engineering and services group. At the same time, we are confident that we will be able to find a new owner with experience in the project business that can take advantage of the future potential of the segment, primarily outside of Germany."
Bilfinger also said it planned to exit the Nigerian construction market with the sale of its remaining 30.3% stake in Julius Berger Nigeria to local investors. The sale is expected to take place in stages throughout this year and Bilfinger said it expects proceeds to be around € 100 million.