UPDATE 1-Bilfinger sees profit boost from industrial services

Tue Feb 11, 2014 3:33am EST

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* Says 2014 adjusted net profit to grow significantly

* Proposes flat dividend of 3 euros per share

* 2013 adjusted EBITA up 6 percent (Recasts, adds 2013 results, detailed outlook)

FRANKFURT, Feb 11 (Reuters) - German engineering and services group Bilfinger said it expected a marked increase in underlying earnings this year as demand grows for its industrial services and cost cuts take hold.

Bilfinger, which develops, builds and operates plants and buildings, generates four fifths of its business in Europe, where weak economies led to delays in contract awards early last year, mainly on bigger and higher-margin projects.

The company launched an efficiency programme last year, including plans to cut about 1,250 administrative jobs over the next two years.

Bilfinger said adjusted earnings before interest, tax and amortisation rose 6 percent last year to 409 million euros, while output volume, orders received and order backlog were roughly unchanged from 2012.

Reported EBITA was 338 million euros, nearly a quarter lower than last year, missing the 391 million average in a Reuters poll of analysts.

The company said it would propose a flat dividend of 3.00 euros ($4.09) per share. ($1 = 0.7327 euros) (Reporting by Marilyn Gerlach; editing by Ludwig Burger and Tom Pfeiffer)

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