BERLIN (dpa-AFX) - At the Annual General Meeting, Tom Blades, Chairman of the Executive Board of Bilfinger SE (BFLBY.PK) said that the capital markets had a positive start into 2017. Bilfinger shares also performed well in the first quarter. However, it came under pressure again together with the recent share price losses on the US market. The company plans to achieve a further improvement in profitability in 2017.
The company wants to increase the value of the company sustainably by generating profitable growth. It has developed a coherent strategy to achieve this goal: Bilfinger 2020.
For the 2017 fiscal year, the company expects an organic increase in orders received compared with the prior year. Output volume is expected to see a mid to high single-digit percentage decline, also on an organic basis. The reason for this is the decline in orders in 2016 which is now reflected in the output volume. It plans to achieve a further improvement in profitability in 2017.
Based on 2017 output volume, the company wants to achieve an average organic growth rate of at least 5 percent per year until 2020.
The company wants to achieve an adjusted EBITA margin of around 5 percent in 2020. This is an increase of approximately 500 basis points compared with 2016. An improved gross margin is expected to contribute some 200 basis points to this goal, while a reduction in selling and administrative expenses should contribute around 300 basis points.
On an adjusted basis, free cash flow should be positive from the 2018 financial year at the latest.
The company is proposing a dividend of 1.00 euro per share already now. This dividend of 1.00 euro should be the floor in the medium term - until our results allow us to pay a higher dividend. Then, it wants to distribute 40 to 60 percent of adjusted net profit to shareholders.
Copyright RTT News/dpa-AFX