German engineering group Bilfinger SE (BFLBY), which had cut its profit forecast for 2014 on June 30, Monday said the company's Executive Board decided to further reduce that forecast due mainly to additional reduction of earnings expectations in the Power business segment.
Following the latest profit warning, Roland Koch decided to step down from the office of Chairman of the Executive Board.
With an expected output volume of around 7.8 billion euros, the Executive Board now expects adjusted Earnings Before Interest, Tax and Amortization or EBITA in the magnitude of 340 - 360 million euros, a reduction of
40 million euros.
Accordingly, adjusted net profit is now expected to be between 205 million euros and 220 million euros, a reduction of 25 million euros.
The adjustment to the recently published earnings forecast is due primarily
to a further reduction of earnings expectations in the Power business
segment, the firm noted.
This resulted, among other things, from a project loss in South
Africa that has only now come to light. The Executive Board now expects an
EBITA margin of between 4 and 5 percent in the Power business segment this year.
Further, shareholder representatives agreed to make a recommendation to the
Supervisory Board in its meeting on August 7 to approve a mutually
agreed early departure of Roland Koch from the office of Chairman of the
Executive Board with effect from August 8.
It was also agreed to assign Member of the Supervisory Board Herbert Bodner to the Executive Board and to appoint him as Chairman of the Executive Board in place of the departed Roland Koch on an interim basis, with effect from August 11 for the period until May 31, 2015.
Roland Koch agreed for the early departure, "in order to ease the path for new confidence building following a second profit warning within a short period of time and, simultaneously, to avoid disagreement on the evaluation of the short-term corporate development and the resulting measures."
The stock settled up 0.1 percent on Frankfurt's Xetra Monday at 60.97 euros.
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