Bilfinger Plans to Sell Power Business, Expects First-Half Loss

BERLIN—Bilfinger SE plans to sell its power business segment and expects a net loss in the first half of the year, the German engineering and construction company said Wednesday.

The power segment generated an output volume of 1.45 billion euros ($1.63 billion) last year and has about 11,000 employees. A comprehensive review of all the segments' projects revealed further substantial losses, said Bilfinger. Low capacity utilization is also a burden.

A goodwill impairment in the power segment will result in a significant loss in the first half of the year, Bilfinger said.

"A structured selling process will be initiated for the power business segment which should be completed within one year," the company said.

In addition to the operational losses, Bilfinger will incur one-time expenses for the reduction of fixed costs over the course of the year. The company expects overall adjusted earnings before interest, tax and amortization to be in the mid-double-digit million euro range for the first half year in continuing operations.

The executive board has initiated a detailed strategic review of all business segments, the results of which will be available in the fall.

Write to Friedrich Geiger at [e-mail]

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