UK
Ireland
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London
German construction group Bilfinger Berger has announced it expects earnings to rise more than 13% in 2007.
The firm, which has PFI interests in the UK, said net income and earnings before interest, taxes and amortization will "clearly" rise in the "double-digit" range, according to Chief Executive Herbert Bodner.
Bilfinger Berger grew strongly once again in the first half of 2007. Demand was lively in all of the group's markets, leading to a high volume of orders received. At June 30 2007, the total order backlog surpassed €10 billion for the first time in Bilfinger Berger's history. EBITA and net profit increased at a higher rate than output volume, and doubled compared with the prior-year period.
The group expanded its product portfolio in major international markets by making acquisitions in the services business. With the takeover of O'Hare Engineering, the company has further developed its industrial services in the UK. Bilfinger Berger is now one of the leading property-management companies in Switzerland as a result of another acquisition in that market.
In the first six months of this year, output volume increased by 20% to €4,367 million. The volume of orders received was 24% higher than in the prior-year period at €5,811 million, thanks to major projects in the construction business and the strong growth of its services’ activities. The order backlog increased by 25% to €10,141 million.
EBITA for the first half of 2007 doubled to €78 million (H1 2006: €38 million). The net interest result was minus €1 million (H1 2006: income of €3 million). Earnings before taxes increased to €71 million (H1 2006: €39 million). Net profit amounted to €41 million (H1 2006: €21 million).
In the financial year 2007, Bilfinger Berger anticipates an increase in output volume to €8.9 billion. According to the group's planning, EBITA will grow faster than output volume, while net profit will significantly surpass the previously targeted level of €100 million. Return on capital employed will exceed the cost of capital of 10.5%, as in 2006.
(LC/SP)
