German engineering group Bilfinger SE says although sales will remain as forecast, 2014 profits will be almost 40 percent down on last year. It blames market uncertainties and low prices.
German plant engineering and services group Bilfinger SE has announced its third profit warning in as many months. It comes barely a month after the first two cost former Hesse state premier Roland Koch his job as Bilfinger CEO. He was replaced by previous Bilfinger chief Herbert Bodner.
The company said low capacity utilization in some units and low market prices mean earnings expectations for 2014 ''must be significantly reduced once again." It also said industrial division restructuring won't improve the bottom line till next year. Market uncertainties are also forcing a fundamental rethink of Bilfinger's power business.
The bottom line
Bilfinger sales are still expected to come in roughly as forecast, at 7.7 billion euros. But net profits are now expected to fall to 160 million euros. That compares with last year's 255 million euros.
The announcement sent Bilfinger shares a further 9 percent downhill on Thursday's market opening, to 54 euros. That's a total fall of 35 percent since their June level of 83 euros.