Bilfinger Turns To Profit In Q2; Backs 2018 Outlook
German engineering group Bilfinger (BFLBY.PK) reported that its profit for the second-quarter was 12 million euros, compared to a loss of 7 million euros in the prior year.
Net profit improved to a positive figure also as a result of the increase in value of the Preferred Participation Note (PPN) from the sale of Apleona completed in 2016. In the prior year, net profit included earnings after taxes from discontinued operations in the amount of 50 million euros.
Adjusted net profit in the second quarter of 2018 was 8 million euros, compared to a loss of 33 million euros in the prior year.
Bilfinger’s orders received increased in the second quarter of 2018 by 15% or organically 21% to 1.139 billion euros. There were double-digit growth rates in both business segments, although compared to a weak prior-year period. Order backlog also increased significantly to 2.767 billion euros from 2.502 billion euros in the prior year.
Revenue was also up 6% or organically 10% to 1.058 billion euros from the previous year. The book-to-bill ratio in the second quarter was thus 1.1.
Bilfinger confirmed the outlook for financial year 2018. Organic growth in orders received will be in the mid single-digit percentage range. Revenue development will be organically stable to slightly growing.
Adjusted EBITA will increase significantly. The Group anticipates a figure in the mid to higher double-digit million-euro range, compared to 3 million euros reported lastyear. Included in this figure are increased expenditures of approximately 20 million euros to generally step up our business development and to further expand the digitalization offerings and bring them to market. These activities will accelerate growth in the coming years.
Return on capital employed and free cash flow will also improve significantly in the current financial year. Both figures will, however, again be negative as a result of special items. On an adjusted basis, i.e. excluding special items, free cash flow is expected to break even.
by RTTNews Staff Writer
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