Bilfinger Berger construction earnings rise
By Helen Wright15 November 2011
Bilfinger Berger reported a 6% year-on-year increase in construction output volume for the first nine months of 2011 to €1.3 billion, while earnings before interest and taxes (EBIT) rose by 25% to €20 million.
The German contractor said the increase in output volume was due to the transfer of a unit specialised in steel construction from its industrial services business segment to its construction section - a development which took place at the start of the year.
And Bilfinger Berger said it would continue to restructure its construction division in order to strengthen its ability to carry out complex infrastructure projects in its civil engineering business.
"We will, on the one hand, combine our tunnelling, foundation, engineering, steel construction, offshore wind parks and construction-related services, and, on the other hand, bring together our road, bridge and rail construction activities in a single unit," the company said.
Overall, Bilfinger Berger reported a 5% year-on-year increase in output volume to €6.2 billion, while orders received remained stable at €5.6 billion. EBIT for the group increased to €250 million from €229 million in the nine months ended 30 September, 2010.
For the full-year, the contractor said it expected output volume to reach €8.2 billion, while EBIT would rise 9% year-on-year to €350 million and overall net profit was expected to reach €380 million - a figure boosted by income from the sale of its Valemus Australia unit to Lend Lease at the end of last year.
In construction, Bilfinger Berger said it expected to see continued stable demand in its key European markets, but warned of restraints on public sector investments in its domestic German market.