1 Min Read
FRANKFURT, July 12 (Reuters) - German engineering services firm Bilfinger believes it has finished reassessing the risks from old projects, its chief executive said on Wednesday after provisions for legacy projects in the United States caused it to issue a profit warning.
Bilfinger late on Tuesday abandoned its target to improve its operating profitability this year after it made provisions of 55 million euros ($63 million) for projects its U.S. subsidiary Westcon took on in 2015 and 2016.
"We are through all the old projects," Tom Blades told reporters on a conference call, although he added: "Of course one can never rule out that something else may pop up."
Blades, who took over in July 2016, is trying to stabilise the company after it endured six profit warnings and four CEOs in the space of two years. Together with a new finance chief, he has instituted new risk-management processes. ($1 = 0.8709 euros) (Reporting by Georgina Prodhan; Editing by Edward Taylor)