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FCC: Net Profits Grew by 16.2%

23/02/2006

FCC: Net Profits Grew by 16.2%

In the year 2005, Fomento de Construcciones y Contratas, S.A. (FCC) reported revenues of 7,089,800,000 euros, which represents an 11.7% increase over the year before.

All strategic areas posted solid growth rates. Construction, up by 7.2% after a 15% increase in the last quarter; Services, which rose by 19.3% and accounted for 39.5% of the Group's consolidated sales; and Cement, which grew by 10.3% thanks to a strong Spanish market and the recovery of the United States market.

International sales increased by 8.1%, aided by the operations of Environmental Services (+22.1%) abroad which accounted for 9.9% of the Group's total revenues.

SALES BY ACTIVITY LINE (in millions of euros)
  SALES % OF SALES
  DEC-05 DEC-04 % CHANGE % of sales DEC-05
Construction 3.346,7 3.123,0 7,2 49,2
Environmental Services 2.078,0 1.827,5 13,7 28,8
Versia 721,5 519,4 38,9 10,2
Cement 978,4 886,8 10,3 13,8
Torre Picasso 18,0 17,1 5,3 0,3
Intragroup (52,8) (25,0)    
TOTAL 7.089,8 6.348,8 11,7 100,0

Thanks the number of contracts awarded, the order book at the end of the year stood at a record high of 20,496,800,000 euros, which represents an increase of 24.9% compared to the same date the year before.

Construction. The Construction area grew by 7.2% during the financial year, with progressive acceleration throughout the year and an increase of 15.2% in the last trimester. This was due to the numerous large-scale projects underway, such as the remodelling of the M-30 in Madrid, Terminal 4 at the Barajas Airport, the Pajares Tunnel and the City of Justice in Barcelona.

The breakdown of the construction sales figure by construction type is as follows:

  • Civil Work: 57%.
  • Non-residential construction: 27%.
  • Residential construction: 16%.
  • Environmental Services. Sales of Environmental Services were up by 13.7%. The breakdown of total revenues is as follows:
  • Urban sanitation: 57.6%.
  • Water: 27.4%.
  • International: 9.6%.
  • Industrial waste: 5.4%.

International business grew by 22% to the point where it represents 9.6% of all Environmental Services income. 57% of all exports in this area correspond to Latin America and 37% to the United Kingdom.

Versia. The revenues earned by this company, which provides numerous non-environmental services, increased by 38.9% to more than 721 million euros:

  • Logistics: 38.3% of the total. This area experienced growth of 151% in 2005 due primarily to the incorporation of Grupo Logístico Santos.
  • Handling: represents 23.2% of the total. In 2005 it grew by 9%, in particular thanks to operations in Belgium.
  • Urban Furniture accounts for 12.9% of the total. In 2005, it grew by 13% thanks to the strength of the Spanish market and international expansion.
  • Parking: accounts for 8.3% of the total and in 2005 experienced growth of 1.4%.
  • Conservation and Systems: represents 7.6% of Versia's income and last year experienced an increase of 8.3%.
  • Vehicle Inspections: 5.7% of the total, with an increase of 9.6% in 2005.
  • City Transit: 3.9%. Sales increased last year by 11%.

Cement. The consolidated turnover of Cementos Portland Valderrivas, S.A. was 978.4 million euros, 10.3% more than the year before.

The breakdown of this figure by business activity is as follows:

  • Cement: 65.5%.
  • Concrete: 24.8%.
  • Other (aggregates, waste recycling, construction materials and transportation): 9.7%.

This rise in turnover is due to the strength of the Spanish market, where Cementos Portland Valderrivas invoiced 12.1% more than in 2004, and to the recovery of the U.S. market (+4.4%).

In the United States, which accounts for 20.2% of the total, this was possible due to the improved efficiency of the factories in Maine and South Carolina, where heavy investments have been made to modernise them, and the consequences of an 11.9% increase in cement prices.

Profits. The gross operating profits (Ebitda) were 988.9 million euros, which represents an increase of 17.4% and a sales margin of 13.9%, sixth-tenths higher than the year before.

Ebitda by business activity (in millions of euros)
  Amount % Total % sales margin
Construcction 191,4 19,4 5,7
Environmental Services 342,8 34,7 16,5
Versia 110,7 11,2 15,3
Cement 312,3 31,6 31,9
Torre Picasso 15,9 1,6 88,3
Others 15,8 1,6  
TOTAL 988,9 100 13,9

The net operating profits (EBIT) rose by 16.1% to 656 million euros with consolidated margins of 9.3%.

The profits before taxes were 696 million euros, an increase of 17.9% thanks to the consolidation of profits carried by the equity method and a reduction of net financial results.

The profits from companies carried by the equity method include those generated by Realia, the real estate company owned by Caja Madrid and FCC. In 2005, the company contributed 67.5 million euros compared to 52 million in 2004, which represents an increase of 29.9%.

Realia closed the fiscal year with net revenues of 597.2 million euros, which represents an increase of 5.7%. EBITDA was 230 million euros, with an increase of 9.5% over the year before. During the financial year, the Group generated profits of 137.3 million euros, an increase of 29.9%.

The profits earned by the parent company were 421 million euros, which represents n increase of 16.2% over the year before.

Investments totalled 943 million euros compared to 624.6 million the year before; in other words, an increase of 51%, while the Group's net indebtedness was 403 million euros compared to 270 million at the end of 2004.

As of 31 December, the Group employed 67,562 people, as a result of adding 3,960 new jobs during the fiscal year.