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 Neetha.Mahadevan@wsj.com
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