Interim Report Q1 2006 Bilfinger Berger
- Double-digit growth in business volume
- Development of earnings as planned
- Further expansion of services business and concessions portfolio
Bilfinger Berger made a good start to the year 2006: the Group’s first-quarter volume figures increased by double-digit rates. Output volume grew by 15% to €1,611 million. Orders received of €2,335 million were 34% above the previous year’s figure, based on high growth rates in both the Civil and Services business segments. The order backlog rose by 15% to a new record level of €7,725 million.
As had been anticipated, the operating result (EBITA) for the first quarter amounted to minus €3 million (Q1 2005: -€6 million). The Group recorded net interest income of €3 million in the first quarter (Q1 2005: +€2 million); earnings before taxes were minus €2 million (Q1 2005:
-€4 million). After the deduction of taxes and minority interest, there was a net result for the first quarter of 2006 of minus €2 million (Q1 2005: -€3 million). With regard to profitability, it is necessary to take into consideration the fact that earnings are generally significantly lower at the beginning of the year than in the following quarters, so they cannot be extrapolated for the full year.
Bilfinger Berger further strengthened its services business with two acquisitions. Effective March 1, 2006, 80% of the shares in Serimo Holding were acquired. This company is the biggest independent property manager in Switzerland. In April, Bilfinger Berger expanded into facility management in the healthcare sector with the acquisition of the Ahr Group. The company manages approximately 200 hospitals and nursing homes in Germany.
In the concessions business, Bilfinger Berger expanded its portfolio with the addition of two major transportation projects in Belfast and Vancouver. The volume of the two projects totals more than €900 million, and the Group’s equity commitment is €50 million. Both projects are based on availability models, generating fixed revenues irrespective of actual traffic volumes. Furthermore, the Group has been selected as preferred bidder for four additional projects.
Bilfinger Berger plans a total output volume of more than €7.2 billion in full-year 2006 as well as significant increases in EBITA and net profit. The Company intends to achieve a return on capital employed in excess of 11% at Group level.