Thursday, June 2, 2016

sells construction sector: Bilfinger is broken – n-tv.de NEWS


 Economy

 


 Thursday 02 June 2016

 
 
 


 
 For some time it goes the construction and services group Bilfinger haywire. Now the company repels one of its most lucrative sectors. Bilfinger separates order of 40 percent of its sales.

 


 
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The construction company has become a large-Mannheim company Bilfinger severs the last roots to his reaching back to the 19th century tradition. The ailing for two years MDax Group sold its construction and real estate business for 1.2 billion euros to the Swedish financial investor EQT. Bilfinger separates order of 40 percent of its sales and is shattered. This leaves the business with industrial services, which suffers from the low price of oil and reluctance to invest in major industries.

Bilfinger had YTD checked a sale of the business unit. With an operating margin of 4.8 percent, the division was the rest of the group last year. Bilfinger shares extended their gains from clear. Thus were the papers biggest winner in the MDAX.

When it comes Bilfinger nearly two years haywire. The starting point of the crisis, in 2014 the former Hessian Minister President Roland Koch cost the post of chief executives, was the loss-making power plant business. The energy transition and management errors were the orders for the construction and maintenance of power plants break. Koch had to resign after several profit warnings.

The division Power is for sale since last year. The board have now decided it instead of selling in individual parts in a single package stated Bilfinger.

In mid-April had surprisingly after less than a year, the Norwegian Per Utnegaard resigned as CEO. His successor Thomas Blades is not yet published. The scepter at Bilfinger has been adding major shareholder Cevian, an activist financial investor also acquired from Sweden. According to insiders urged Cevian, which also provides the chairman with Eckhard Cordes, on a sale of real estate and construction business. At the AGM had shareholders’ representatives criticized that the group still has no clear strategy against the crisis. For Cevian was jointly responsible.

CFO Axel Salzmann, the acting head of the Board is currently undertaking, declared with the money from the sale of the company would primarily strengthen its position as market leader for industrial services. In addition to investments, acquisitions are planned. A detailed plan will after commencement of Blades, the changes from Linde to Bilfinger determined. At Group level, retain a capital gain of expected around 500 million euros. Of the purchase price agreed EQT pay 300 million euros in a few years when investor sells the previous Bilfinger division again. Then Bilfinger should among other 49 percent of the proceeds accruing from the resale.

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The two initially remaining divisions will write this year operationally in the black again Bilfinger. In future core business with industrial services, the performance will indeed be significantly lower than the 3.65 billion euros last year. Adjusted for special items, operating profit (EBITA) will however be on the previous year’s level of 128 million euros. In power generation business (Power) will also miss the previous year’s figure of 1.29 billion euros, the power, the loss: but go back (2015 70 million euros)

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  Source: n-tv.de
 


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