Interim Report Q3 2015 | September 30, 2015

November 12, 2015

    • Output volume 5 percent above prior year
    • Orders received up 23 percent as a result of extension of important service contracts in the first half of the year
    • Adjusted EBITA of €121 million underscores full-year forecast
    • Outlook 2015 confirmed: output volume at prior-year level, adjusted EBITA between €150 and €170 million

    In the first nine months of 2015, the Group‘s output volume increased by 5 percent to €4,781 million. Orders received were up 23 percent to €4,957 million. This is attributable primarily to the extension of significant service contracts in the first half of 2015. Although adjusted EBITA of €121 million was, as expected, significantly below the prior-year figure, it nonetheless underscores the earnings forecast for full-year 2015.

    “Bilfinger is on course to reach the forecast issued for 2015”, says Chairman of the Executive Board Per H. Utnegaard. “As a result of the strategic repositioning that has now been initiated, we will lead the company back to a path of profitable growth in the medium term.”

    As a consequence of a non-cash goodwill impairment undertaken already in the second quarter of 2015 in the amount of €330 million as well as operating losses in the Power business and restructuring expenses, net profit after the first nine months of 2015 amounted to minus €510 million. 

    Strategic repositioning 

    Bilfinger is facing far-reaching changes. The company is narrowing the focus of its business from three to two segments, concentrating activities that are currently spread around the globe on the home market of Europe and replacing a complex structure with a transparent and fast-moving organization. Bilfinger’s profitability will increase sustainably as a result.

    “The two business segments Industrial and Building and Facility will operate as independent segments within Bilfinger and will be given greater entrepreneurial freedom. With this independence, each segment will be able to develop its strengths in a more targeted manner”, added Per H. Utnegaard.

    Development of the business segments

    The Industrial business segment has a good basis for future development. In a number of areas, however, restructuring is necessary. Overall, output volume was stable at €2,707 million, orders received of €2,455 was 2 percent below the figure for the prior year. EBITA decreased to €94 million (previous year: €127 million). A strong reluctance to invest in the European and American oil and gas sectors, triggered primarily by the low oil price, continues to have a negative impact on this segment. 

    “In the Industrial business segment, low-margin areas will be repositioned. The focus in this regard is on the optimization of organizational and cost structures”, explains Per H. Utnegaard. “Moreover, a focused sales strategy in the operating business will help to further improve cooperation with strategically important customers and to expand the market position in core regions Central and Northern Europe.

    The Building and Facility business segment continued its successful development. Output volume increased by 11 percent to €2,124 million. Positive exchange rate effects and the acquisition in mid 2014 of British real-estate consultancy GVA also contributed to this development. The increase in orders received by 52 percent to €2,568 million is mainly attributable to the extension of significant facility management contracts in the first half of the year. EBITA increased to €95 million (previous year: €84 million).

    Outlook 2015 confirmed: output volume at prior-year level, adjusted EBITA between €150 and €170 million

    • In the Industrial business segment, Bilfinger expects a significant decrease in output volume in 2015 to about €3.4 billion. The company anticipates an adjusted EBITA margin of more than 3 percent (2014: 5.1 percent).
    • Output volume of the Building and Facility business segment will grow significantly, primarily as a result of the acquisition last year of British real-estate services provider GVA to a good €2.8 billion. The company expects an adjusted EBITA margin at the prior-year level (2014: 5.1 percent).
    • For the full Group, with an output volume at the level of the prior year (2014: €6,246 million), Bilfinger anticipates an adjusted EBITA of between €150 and €170 million (previous year: €262 million).
    • Operating losses and special items from the goodwill impairment in the Power business as well as restructuring expenses are the main factors behind the significantly negative net profit. A substantial portion of this, however, is non-cash. 

    Key figures for the Group*

    € millionQ1 - Q3Q3
    20152014∆ in %20152014∆ in %1-12/2014
    Output volume4,7814,54451,6641,61136,246
    Orders received4,9574,040231,3711,33035,510
    Order backlog4,6484,683-14,6484,683-14,401
    EBITA adjusted1121163-265876-24262
    Adjusted net profit from continuing operations16799-323445-24160
    Adjusted earnings per share from continuing operations
    (in €)
    1.512.23-320.761.00-243.62
    Net profit2-510-125-71-180-71
    Cash flow from operating activities-102-1053762-4034
    Investments  63213-7020146-86258
       thereof in property,
       plant and equipment
    6084-291925-24117
       thereof in
       financial assets
    3129-981121-99141
    Employees57,61958,705-257,61958,705-257,571

    * The key figures for the Power business segment and Offshore Systems, which have been put up for sale, for the sold divisions Construction and Infrastructure as well as the sold activities of the former Concessions business segment are no longer presented in the business segments, but under 'Discontinued operations‘. All of the figures presented in this interim group management report relate, unless otherwise stated, to the Group’s continuing operations; the figures for the prior-year period have been adjusted accordingly.

    1) Adjustments are described in detail in the Interim Report Q3 2015 under “Reconciliation adjusted earnings”.
    2) Includes continuing and discontinued operations.