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Net Profits of FCC up 26%


Net Profits of FCC up 26%

The net turnover of Fomento de Construcciones y Contratas, S.A. (FCC) for the 2004 financial year was 6,285,900,000 euros, which represents a 3.9% increase over the year before.

All of the strategic areas had positive growth rates: Services (+11.6%), Construction (+ 4.7%) and Cement (+ 1.8%).

In Spain, the Group's business continued to grow steadily (+4.3%). International business accounted for 10.2% of total turnover.

Ebitda por actividades (millones de euros)
  DEC-04 DEC-03 % CHANGE DEC-04
Public services 2.333,7 2.089,9 11,6 36,9
Construction 3.090,2 2.950,1 4,7 48,9
Cement 881,5 865,6 1,8 13,9
Other 17,1 258,0 -92,7 0,3
Intragroup (36,6) (113,1)    
TOTAL 6.285,9 6.050,5 3,9 100,0

Thanks to the new contracts awarded to the Group, the portfolio of outstanding construction work and services as of the end of the year reached a record high of 16,405,100,000 euros, which represents an increase of 6.9% compared to the same date the year before.

Services. The services area grew by 11.6%, with the highest growth rates in:

- Industrial waste (+29%) where the area's good performance was coupled with the effects of the new companies acquired during the financial year.

- Water (+8.3%) as a result of the new contracts awarded throughout Spain being implemented.

- Transportation (+32.8%) thanks to the commencement of operations of the Barcelona tram system.

- Parking (+22.8%) with new managed parking garages in Madrid.

- Logistics (+11.2%) thanks to the contracts signed in connection with new activities.

The turnover in this area rose by 4.7% based on domestic activity (+3.9%) and international sales (+27.8%), which for the first time in several years registered positive growth rates.

The portfolio of work under construction reached a record high of 4,351.2 million euros, 18.9% more than the year before. This figure guarantees the Group 16.9 months of business activity, two months more than at the end of 2003.

Turnover was 881,500,000 euros, which represents an increase of 1.8%. The strength of the Spanish market, where sales were up by 3.5%, offset the decline in the United States due to an 8% depreciation of the dollar against the euro.

The gross operating profit (Ebitda) was 851,300,000 euros, which represents an increase of 5.9% and a sales margin of 13.5%, up two-tenths from the year before.

Activity Margins (in millions of euros)
  Amount % Total
Public services 377,2 44,3%
Construction 159,0 18,7%
Cement 265,0 31,1
Others 50,1 5,9%
TOTAL 851,3 100,0

Ordinary profits were 570.2 million euros, a 9.4% increase over the year before and 9% of turnover. In 2003, the percentage was 8.6%.

In addition to the positive evolution of operating profits, financial costs were contained as a consequence of a decrease in indebtedness and the maintenance of interest rates at currently low levels.

Furthermore, the results of the companies carried by the equivalence method revealed a higher contribution by Realia, whose net profits increased by 9.8%.

Profits before taxes (BAI) grew by 21.6% to 603.3 million euros, which includes 33.1 million euros of extraordinary results, generated primarily by the sale of 10% of Safei.

The net profit of the parent company was 388.36 million euros, which represents an increase of 25.8% over the previous year and an improvement of 1.1% of the net sales margin which ended at 6.2%.

The Group's investments were 625 million euros, a similar figure to that of the previous year.

The Group's net indebtedness was 250.8 million euros, which amounts to a reduction of 54.1%. The leveraging ratio (net debt divided by debt plus capital and reserves plus minority shareholders) was 9.28% compared to 19.7% the year before.

As of December 31, FCC had 63,602 employees, which means that 1,813 new jobs were added during the year.