BERLIN—Bilfinger SE plans to sell its power business segment and
expects a net loss in the first half of the year, the German
engineering and construction company said Wednesday.
The power segment generated an output volume of 1.45 billion
euros ($1.63 billion) last year and has about 11,000 employees. A
comprehensive review of all the segments' projects revealed further
substantial losses, said Bilfinger. Low capacity utilization is
also a burden.
A goodwill impairment in the power segment will result in a
significant loss in the first half of the year, Bilfinger said.
"A structured selling process will be initiated for the power
business segment which should be completed within one year," the
company said.
In addition to the operational losses, Bilfinger will incur
one-time expenses for the reduction of fixed costs over the course
of the year. The company expects overall adjusted earnings before
interest, tax and amortization to be in the mid-double-digit
million euro range for the first half year in continuing
operations.
The executive board has initiated a detailed strategic review of
all business segments, the results of which will be available in
the fall.
Write to Friedrich Geiger at friedrich.geiger@wsj.com
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