The results were disappointing as reported net profit was a mere €6m and free cash flow reported €5m. The skilled labour shortage, which could result in a war for talent and labour price increases, remains a key risk to the company’s margin. Management believes it is well positioned to increase the prices of its services. Following this earnings release, we expect to keep our target price mainly unchanged.
13 Nov 2019
Q3 19: disappointing and mounting labour cost inflation risk
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Q3 19: disappointing and mounting labour cost inflation risk
Bilfinger SE (GBF:WBO) | 0 0 (-0.4%) | Mkt Cap: 1,613m
- Published:
13 Nov 2019 -
Author:
Felix Brunotte -
Pages:
3
The results were disappointing as reported net profit was a mere €6m and free cash flow reported €5m. The skilled labour shortage, which could result in a war for talent and labour price increases, remains a key risk to the company’s margin. Management believes it is well positioned to increase the prices of its services. Following this earnings release, we expect to keep our target price mainly unchanged.