* CEO Koch says takes responsibility
* Company cuts earnings outlook, citing Power unit again
* Koch's predecessor Bodner to take interim CEO role
(Adds details on Power unit, previous profit warning, share
By Ludwig Burger
FRANKFURT, Aug 4 German industrial services and
construction group Bilfinger SE said Chief Executive
Roland Koch would quit, taking responsibility for a second cut
in its 2014 earnings outlook since end-June.
The group now expects adjusted earnings before interest,
taxes and amortisation (EBITA) of 340 million euros ($456
million) to 360 million euros, down from a previous target range
of 380-400 million announced on June 30, when it had already cut
Koch, a former premier of the German regional state of
Hesse, offered to step down on Friday on mutually agreed terms,
the company said after the market close on Monday.
He had orchestrated a major reshuffle at Bilfinger away from
civil engineering and construction to higher-margin industrial
services to ease its exposure to price wars in the building
But the strategy failed to pay off as Germany's big
utilities cut back their spending on industrial services.
Koch said in the statement that predictability was important
for a listed company.
"As a result of two profit warnings in quick succession, for
which I ... take responsibility, this trust has been shaken."
Koch added that he could not agree with some supervisory
board members as to how to respond to the latest development.
Supervisory board member Herbert Bodner, who was CEO until
Koch took over in 2011, will take back the top job on an interim
basis until May next year, or sooner if a permanent successor
can be found before that, Bilfinger said.
Bilfinger cut its outlook for adjusted net profit to 205-220
million euros from a previous target of 230-245 million, citing
weakness at its Power unit, which lost a project in South Africa
among other setbacks.
The Power unit had already been the main culprit when the
group slashed its outlook and announced job cuts on June 30.
The Power division, which accounted for about a third of
Bilfinger's EBITA last year, derives most of its business from
major German utilities such as E.ON, RWE
and EnBW and their peers in other countries.
Germany's decision to phase out nuclear power and push into
renewable energy means that big German utilities are cutting
costs and investing less in industrial services than the company
The stock has lost more than a third of its value since
reaching a record high in April.
($1 = 0.7456 Euros)
(Reporting by Ludwig Burger; editing by Jane Baird)