BILFINGER UND BERGER SEES OUTPUT FALLING IN 1987
Bilfinger und Berger-Bau
AG <GBFG.F> expects group construction output in 1987 to fall
to around 2.5 billion marks in 1987 from 2.73 billion last year
and sees foreign business stabilizing just under its 1986
level.
    In a letter to shareholders, Bilfinger und Berger said
foreign construction work fell to 1.37 billion marks in 1986
from 2.10 billion the year before. It said the drop was due to
a fall in orders and the dollar's decline against the mark.
    The firm expects good 1986 results, with an appropriate
dividend. In 1985 group net profit fell to 14.1 mln marks from
22.6 mln in 1984 and the dividend lost one mark to nine marks.
    Bilfinger und Berger's U.S. Units took up 600 mln marks of
its total foreign construction output.
    The company said domestic earnings in 1986 improved
slightly despite strong competition, due to efforts to avoid
taking on orders which would not break even.
    Foreign earnings were hit by the lower dollar and temporary
payment difficulties by clients.
    Incoming orders in 1986 rose to 3.05 billion marks from
2.58 billion the year before, comprising domestic 1.30 billion
marks versus 1.41 billion and foreign 1.75 billion marks versus
1.18 billion.
    Foreign incoming orders rose despite economic difficulties
in developing countries and OPEC nations hit by lower oil
prices, Bilfinger und Berger said.
    In 1986 it won new orders in the U.S., Pakistan, Nigeria
and Egypt.
    Orders on hand at end-1986 totalled 3.64 billion marks
against 3.32 billion at end-1985.
 REUTER
