Bilfinger to Post Net Loss in 2014

FRANKFURT--German industrial engineering and services company Bilfinger SE (GBF.XE) said Wednesday it expects to post a full-year net loss, blaming worsening demand conditions in its power and industrial business.

"Significantly worsened demand -- particularly in Germany and other European countries -- has led not only to reduced earnings expectations for 2014 but also to a significant adjustment to earnings forecasts for the years to follow," Bilfinger said.

At 1104 GMT the company's shares were down 9.4% at EUR46.22.

According to preliminary figures, released Wednesday, the company swung to a net loss of EUR125 million in the first nine months compared with a profit of EUR116 million a year earlier.

Earnings before interest, taxes and amortization before items in the period fell, as expected, to EUR161 million from EUR264 million in the year-ago period.

Adjusted net profit from continuing operations fell 34% to EUR103 million, while orders received fell 8.9% to EUR5.12 billion. Bilfinger said.

Earnings at its industrial business declined 14% EUR127 million due to the difficult situation in the European process industry and a lack of investment in the power plant sector, Bilfinger said. Its power business swung to a loss of EUR2 million.

In addition, goodwill impairments of EUR148 million, a write-down on investments in a production site in Poland, one-time expenses in connection with its efficiency program as well as restructuring expenses in the power and industrial businesses hurt net profit.

Bilfinger expects one-time items of about EUR230 million will lead to a net loss in the full-year. But it confirmed its outlook for output volume for the full-year, which is expected to be flat on the year, and adjusted ebita from continuing operations of at least EUR270 million.

Write to Neetha.Mahadevan at [e-mail]

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