FRANKFURT (Reuters) - Struggling German engineering and services group Bilfinger (DE:GBFG) will do whatever it takes to turn the company around, its new chief executive said on Wednesday.
Bilfinger swung to a second-quarter net loss of 423 million euros ($468 million) on a goodwill impairment and restructuring expenses in its Power segment, which is up for sale after failing to adapt to Germany's switch to renewable energy.
"We will resolutely face the changes that are necessary: We will increase our profitability, reduce complexity in the group, simplify processes and decrease costs in all areas," CEO Per Utnegaard said in a statement.
Bilfinger issued six profit warnings in the space of a year before the arrival of Utnegaard, the former CEO of airport services group Swissport who was appointed by major shareholder and activist investor Cevian.
It said it aimed to sell the Power business, which accounted for about a fifth of group output with 1.45 billion euros in 2014, by the middle of next year.
But problems at its biggest unit, Industrial, would push its adjusted earnings before interest, tax and amortisation (EBITA) down to between 150 and 170 million euros this year from 262 million in 2014 because of a weak oil and gas business, it said.
