Bilfinger SE’s quarterly loss widened as the embattled German engineering and real-estate services company faces a shareholders’ meeting later today and the loss of two directors.
The net loss widened to 76 million euros ($87 million) from 17 million euros in the same period last year, the Mannheim, Germany-based company said in a statement. The company confirmed a financial outlook for the full year and said it expects a “slight increase in earnings” and plans to start a 100 million euros annual savings plan.
Thomas Blades was appointed as chairman of the executive board and the company expects he will assume the position in the third quarter, although no date was given, according to the statement.
Bilfinger said Tuesday two board members won’t stand for re-election later today at a shareholders’ meeting in Mannheim, intensifying the crisis at the German company, which only this month announced the appointment of Blades as CEO from industrial gases company Linde AG after the abrupt departure of CEO Per Utnegaard in April.
“2016 will be a transition year,” Chief Financial Officer Axel Salzmann said in the earnings statement. “Initial positive effects from the efficiency enhancement measures are already having an impact” and the company expects a “moderate increase in earnings.”
Bilfinger said its industrial segment was hurt in the first quarter by lower demand due to a drop in oil prices, taking output volume down 6 percent to 788 million euros. The market was “generally stable” for the building and facility segment with output volume falling 3 percent to 576 million euros, the statement said.
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