German engineering and services group Bilfinger Berger announced a positive development in its financial results of 2013 Q3. Bilfinger said output volume, orders received and order backlog had caught up with the prior-year levels by the end of September, while adjusted EBITA for the third quarter was higher than in the same period of last year.

Profit, including continuing and discontinued operations, for the third quarter slid to €48 million euros from last year's €57 million. On an adjusted basis, net profit from continuing operations totaled €70 million, compared with 66 million euros a year ago.

Adjusted EBITDA for the quarter rose to 107 million euros from 104 million euros last year. For the third quarter, output volume edged up 1 percent to 2.206 billion euros, and orders received in the quarter rose 10 percent to 2.072 billion euros.

Bilfinger, however, considerable efforts will continue to be necessary in the fourth quarter in order to achieve the goals that have been set for 2013. Bilfinger is currently negotiating the sale of several assets.

Negotiations on the sale of the concessions projects at an advanced stage

As previously reported, Bilfinger has decided to divest the Concessions segment. Negotiations with Bilfinger Berger Global Infrastructure SICAV S.A. (BBGI), an infrastructure fund listed on the London Stock Exchange, for the takeover of the project portfolio available for sale are at an advanced stage. BBGI is planning a capital increase to finance the transaction.

Bilfinger said that several projects can be transferred to the buyer in the current year and the remaining portfolio can be transferred in 2014. As previously reported, two Canadian projects have already been sold to BBGI and the transaction will probably take effect in the fourth quarter of 2013. In total, Bilfinger anticipates gross sale proceeds in the magnitude of €270 million from the two transactions with BBGI; the capital gain will be in excess of €50 million. Transaction costs and expenses for winding-up the discontinued operations amount to more than €10 million according to current estimates.

Divestment of loss-making road construction in Germany

Bilfinger has signed a contract for the sale of Bilfinger's road construction activities in Germany. Bilfinger Infrastructure GmbH is to be acquired by Betam GmbH in Frankfurt am Main. One reason is that the company's competitiveness is limited in the German market for road improvements and repairs, which is dominated by small and medium-sized enterprises.

As a result, the Construction business segment has recognized a loss of €15 million in relation to Bilfinger Infrastructure GmbH as of September 30, 2013. The sale leads to an expense of €5 million. Bilfinger Infrastructure GmbH employs approximately 240 people and has generated annual output volume of approximately €100 million in recent years.