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FCC's Net Profits up by 13%

24/02/2004

FCC's Net Profits up by 13%

The net turnover of Fomento de Construcciones y Contratas, S.A. (FCC) for the year 2003 was 6,050,500,000 euros, which represents a 10.1% increase over the year before.

All areas experienced positive growth as a consequence of lively activity in the Spanish market's strategic areas: services (+13.7%), construction (+ 16.8%) and cement (+ 11.4%).

International business contributed 10.5% to the net turnover. The good performance of some service activities in the international arena, such as handling and urban furniture, was particularly noteworthy.

SALES BY ACTIVITY (in millions of euros)
  % OF SALES
  DEC-03 DEC-02 % CHANGE DEC-03
Public services 2.089,9 1.911,1 9,4 33,9
Construction 2.950,1 2.613,1 12,9 47,9
Cement 865,6 831,4 4,1 14,0
Other 258,0 234,8 9,9 4,2
Intragroup (113,1) (93,2)    
TOTAL 6.050,5 5.497,2 10,1 100,0

Thanks to new contract awards, the portfolio of pending construction and service contracts at the end of the fiscal year reached a historical high of 15,344,000,000 euros.

Services. The services area grew by 9.4%. The greatest growth occurred in:

  • Industrial Waste Management (+17.6), due to the expansion of the consolidation perimeter as a result of the acquisition of several companies.
  • Environment (+14.7%), thanks to the renewal and extension of existing contracts and new contract awards.
  • Water (+10.8%), thanks to the implementation of new contracts awarded throughout Spain.
  • Handling (+101%) This spectacular increase is basically due to the inclusion of the activities at the Brussels airport for the complete fiscal year.
  • Parking (+20.6%) due to new contracts for supervised parking areas in Madrid.

Construction. The turnover in this area grew by almost 13%, due primarily to civil work contracts in Spain associated with the Infrastructure Plan. Despite the rate at which the work is being performed, the portfolio reached a record high of 3,659,8 million euros, a clear indication of the Group's success at winning new contract awards.

Cement. The turnover in this area was 865.6 million euros, which represents an increase of 4.1%. The strength of the Spanish market, where sales were up by 11.4%, offsetting the negative effects of decreasing cement sales in the United States and a 17% depreciation of the dollar during the fiscal year.

Results. The gross operating profit (Ebitda) was 804.1 million euros which represents an increase of 8.5% and a sales margin of 13.3%.

Activity Margins (in millions of euros)
  Amount % Total
Public services 335,6 41,7%
Construction 140 17,4%
Cement 276,2 34,3%
Others 52,3 6,6%
TOTAL 804,1 100,0

Cash flow increased by 22.5% to 707.7 million euros.

The ordinary results were 521.1 million euros, 11% more than the year before and 8.6% of turnover, a slightly higher percentage than the previous fiscal year.

The before-tax profits were 496.3 million euros, an increase of 9% compared to the year before.

The gross profit of the dominant company was 308.6 million euros, which represents a 13% increase over the previous fiscal year and a sales margin of 5.1%.

A total of 624 million euros were invested, with more than half of that amount invested in the services area.

As of 31 December, the number of employees was 61,790, an increase of 6,909 jobs in one year.