* 2016 net profit margin target 3.3 pct vs 2.6 pct in 2011
* Has over 1 billion euros available for buys
* Takeovers planned in Asia, for Industrial & Services units
* Shares down 0.6 pct, MDAX up 0.2 pct
(Adds CEO comments, details on takeovers)
By Peter Dinkloh
MANNHEIM, March 21 Bilfinger Berger,
Germany's second-largest building company, is banking on
takeovers in Asia away from its traditional construction
business to reach its 2016 earnings goal, it said on Wednesday.
The company, based in the southern German city of Mannheim,
said it aims to increase its profitability, measured as adjusted
net income as a percentage of output, to at least 3.3 percent in
2016 from 2.6 percent in 2011.
Bilfinger is in the last steps of transforming itself from a
construction company to a provider of services to utilities,
engineering companies and governments.
The company has "significantly" more than 1 billion euros
($1.3 billion) available for acquisitions and plans to spend a
"considerable" portion of this amount this year and next, it
said in its annual report published on Wednesday.
"If we look at our acquisitions list it's very clear that
the Asian window will play a role," Chief Executive Roland Koch
The company bought Neo Structo, a services provider to the
process industry in India, for an undisclosed amount last year.
Koch, the former head of Hesse's state government, started
his tenure at Bilfinger last year by promising higher
profitability as he set the target to double net profit to 400
million euros and raise output by half by 2016.
Output comprises a company's own sales plus revenues from
its partners which have a minority stake in construction
The company's construction business will reach its targeted
volume of 1.5 billion euros in annual output next year and
consequently the focus for takeovers will be for its Industrial
Services and its Power Services units, it said.
Shares were down 0.6 percent at 72.87 euros at 1551 GMT,
while the midcap index MDAX was 0.2 percent higher.
The company's shares have risen 26 percent over the past 12
months, giving the company a stock market value of 3.4 billion
euros, according to Thomson Reuters data.
Bilfinger, which traces its roots back to a construction
project in 1880, is valued at 12.6 times expected earnings per
share in the coming 12 months, a 3 percent premium to peers
including Vinci, according to Thomson Reuters
(Editing by Mike Nesbit)