Bilfinger SE

Earnings Release • Jun 30, 2014

News Details

Ad-hoc | 30 June 2014 21:50

Bilfinger SE: Bilfinger lowers outlook for 2014

Bilfinger SE / Key word(s): Change in Forecast

30.06.2014 21:50

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

---

A current forecast for financial year 2014 has revealed that Bilfinger SE,
Mannheim will not achieve the significant increase in earnings projected
for 2014.

For 2014, Bilfinger now anticipates a decrease in earnings with an output
volume of approximately EUR7.9 billion (comparable figure for 2013, without
activities up for sale: EUR7.7 billion). An adjusted EBITA of between
EUR380 million and EUR400 million is anticipated (comparable figure for
2013: EUR419 million); adjusted net profit will be between EUR230 million
and EUR245 million (comparable figure for 2013: EUR255 million). In the
Industrial business segment, the company expects an increase in the EBITA
margin to a good 6 percent (comparable figure for 2013: 5.7 percent) with
an output volume of approximately EUR3.7 billion (comparable figure for
2013: EUR3.7 billion). In the Power business segment, the EBITA margin will
decline significantly to a magnitude of 6 percent (comparable figure for
2013: 8.9 percent) as a result of the currently low capacity utilization in
the Piping Systems division as well as due to a number of weaker project
results; an output volume of approximately EUR1.5 billion is expected
(comparable figure for 2013: EUR1.7 billion). With an EBITA margin of
approximately 5 percent (2013: 4.9 percent) that is at the upper end of the
target corridor and an output volume of approximately EUR2.7 billion
(comparable figure for 2013: EUR2.3 billion), the Building and Facility
business segment will continue to develop positively.

In the first half of 2014, adjusted EBITA will be significantly below the
prior-year figure.

The Power business segment in particular is suffering from the effects of
the energy transformation in Germany which has led to a considerable
reluctance to invest on the part of energy suppliers. The extent of the
negative impact on investment behaviour in other Central European countries
was not foreseeable. German wind energy provided at no charge, for example,
is preventing the construction of new power plants in Poland. The Piping
Systems division in particular has been affected by this development. In
the Industrial business segment, the oil and gas sector is feeling the
impact of drastic cost-cutting among its European clients in repair and
maintenance work, triggered by falling gas prices in the USA. A lack of
German power plant projects has meant that scaffolding and other trades
have shifted to other markets; this has intensified price pressure in the
process industry.

All of these developments put pressure on capacity utilization and margins,
which negatively impacts the company's growth plans for output volume and
earnings, especially in the Power business segment.

As a result of the developments described above, Bilfinger will adjust
capacities in the particularly impacted Power business segment as well as
in the Industrial business segment and will initiate further near-term cost
reduction programs without delay. This will lead to an additional
restructuring expense in the low to middle double-digit million range in
the second half of the year. In addition, implementation of the ongoing
Excellence efficiency enhancement program will be accelerated.

Bilfinger will review its medium-term volume goals and describe the new
goals in the interim report on the third quarter of 2014. No adjustments
are necessary in the margin goals for Industrial business segment or the
Building and Facility business segment. Following the restructuring phase,
Bilfinger will once again target a margin above the 8 percent mark in the
Power business segment from 2016.

30.06.2014 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

---

Language: English
Company: Bilfinger SE
Carl-Reiß-Platz 1-5
68165 Mannheim
Germany
Phone: +49 (0621) 459-0
Fax: +49 (0621) 459-23 66
E-mail: sabine.klein@bilfinger.com
Internet: http://www.bilfinger.com
ISIN: DE0005909006
WKN: 590900
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), Stuttgart;
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München

End of Announcement DGAP News-Service

---