Bilfinger Berger reports improved sales and profits

Bilfinger Berger reported 2008 sales of € 10,7 billion, up +16% on the € 9,2 billion recorded 12 months ago. Pre-tax profit for the year rose +49% to € 200 million, up from € 134 million in 2007.

In the civil construction division of the Group, revenues grew +14% from € 3,6 billion in 2007 to € 4,1 billion last year, while pre-tax profit fell -71% to € 17 million, down from € 58 million 12 months earlier. "Orders received and order backlog were impacted by exchange rate fluctuations and, as reported in the second quarter, we had a one-time charge on earnings of -€ 65 million relating to the E18 highway project in Norway which affected profits," said a company spokesperson.

The building and industrial division saw a +3% growth in revenues from € 1,9 billion in 2007 to € 2 billion last year, although pre-tax profits fell -42% from € 24 million to € 14 million as a result of additional costs relating to projects in Germany.

Organic growth and acquisitions saw the services division increase sales by +27% to € 4,5 billion, up from € 3,6 billion the previous year. Pre-tax profits for the division increased by +34% to € 224 million, up from € 167 million in 2007.

"The full extent to which the economic crisis will impact Bilfinger Berger is difficult to predict," said Herbert Bodner, chairman of the board.

"In the construction business, demand for commercial works will fall. However, at the same time, government economic stimulus programs should benefit the company. We expect a clear increase in the earnings contribution from construction in 2009," said Mr Bodner.