Bilfinger Profit Beats Estimates on Industry-Unit GrowthAlex Webb
Bilfinger SE forecast an increase in profit in 2013, driven by savings and demand for engineering work and services in the power industry.
The German builder is budgeting for an increase in the volume of work, even as it reduces the number of low-margin construction projects it takes on, the company said in a statement today. Bilfinger reported a 2 percent gain in sales last year to 8.64 billion euros ($12 billion). Its shares rose as much as 2.4 percent in Frankfurt.
Chief Executive Officer Roland Koch said last month that the company has an 850 million-euro strong warchest for acquisitions, which are part of his strategy to reorganize the company. HeidelbergCement AG, the world’s third-largest maker of cement, posted quarterly profit last week that exceeded analysts’ estimates as growth in North America, higher prices and cost cuts offset a slump in Europe.
Koch last year improved Bilfinger’s earnings before taxes and amortization margin to 5.4 percent from 4.7 percent. Earnings on that basis gained 25 percent to 277 million euros.
Bilfinger traded 1.7 percent higher at 75.25 euros as of 9:39 a.m. local time.