Bilfinger Slashes Outlook for 2014

Posted by Eric Haun
Monday, June 30, 2014
Photo courtesy of Bilfinger

German engineering and services company Bilfinger SE slashed its 2014 outlook on Monday, blaming fallout from Germany's transition to renewable energy for its woes.

Adjusted earnings before interest, tax and amortization (EBITA) are expected to come in between 380 million euros ($518.34 million) and 400 million euros this year, down from 419 million in 2013, it said in a statement.

Bilfinger's EBITA margin in its power business is expected to slide to 6 percent in 2014 from 8.9 percent last year, hurt by a reluctance to invest on the part of energy suppliers affected by the shift to green energy.

"The extent of the negative impact on investment behaviour in other central European countries was not foreseeable," the statement said.

"German wind energy provided at no charge, for example, is preventing the construction of new power plants in Poland," it said.

Adjusted net profit will be between 230 million euros and 245 million euros, compared with 255 million in 2013, it said.

Bilfinger said it would adjust capacities in its power and industrial business segments, starting further near-term cost- cutting programmes without delay.

This would lead to an additional restructuring expense in the low to middle double-digit million-euro range in the second half of the year, it said.

After the restructuring, Bilfinger will again target a margin above 8 percent in the power business segment from 2016, it added.

($1 = 0.7331 Euros)

(Reporting by Jonathan Gould; Editing by Larry King)

Maritime Reporter July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Harper Government Invests in Naufrage Harbor

The Honorable Gail Shea, Minister of Fisheries and Oceans, announced today an investment to improve safety and working conditions for fishermen at Naufrage Harbor, Prince Edward Island.

Strategic Marine’s Stock Program Full Power Ahead

Strategic Marine, the specialist shipbuilder and fabricator, has confirmed its stock program of personnel transport vessels is market-ready. “Our stock program

Shift to Contract Labor in U.S. Maritime, Offshore Sectors Underway

Maritime and Offshore recruiter Faststream has reported a shift in attitude towards temporary, project and consulting work following a recent survey to over 1,000 candidates in North America.

Energy

GasLog Orders Two LNG Carriers

GasLog Ltd. today announced that it has ordered two new 174,000 cubic meter LNG carriers from Hyundai Heavy Industries Co., Ltd. ("Hyundai") in South Korea.

Ondimar Firms Order Suezmax Quartet at Navantia

Navantia and Maritime Transport Ondimar LDA (shipping company Ibaizabal Group) today ratified the contracts signed in late June and the financial structure for

Contship Italia Signs Iran MoU

Contship Italia Spa, also on behalf of Eurogate GmbH & Co. KGaA, KG, recently signed a strategic Memorandum of Understanding (M.O.U.) with Sina Port & Marine Company (SPMCO),

News

GasLog Orders Two LNG Carriers

GasLog Ltd. today announced that it has ordered two new 174,000 cubic meter LNG carriers from Hyundai Heavy Industries Co., Ltd. ("Hyundai") in South Korea.

Injured Woman Rescued on Lake Washington

Coast Guard, Seattle Police Department, Seattle Fire Department, King County Sheriff’s Office and Washington Department of Fish and Wildlife personnel rescued

Jonathan Appointed LOC Group's London MD

In line with LOC’s continual global growth and strengthening of the senior management team,  Britain has been appointed as Managing Director of the London operation.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Offshore Oil Pipelines Pod Propulsion Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1771 sec (6 req/sec)