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FCC: Net profit increased by 27.1% 

27/02/2007

FCC: Net profit increased by 27.1% 

  • Revenues exceeded 9.48 billion euro (+33.7%)
  • EBITDA increased by 40.3%

Fomento de Construcciones y Contratas, S.A. (FCC) obtained revenues amounting to 9,480.9 million euro in 2006, a 33.7% increase over the previous year.
 
All strategic areas presented solid growth of over 20%: Construction (+31.3%), Environmental Services (+36.5%), Versia (+20.2%) and Cement (+49.9%).
 
Organic growth, excluding changes in the consolidation scope (Grupo Logístico Santos, Entemanser, Marepa, ASA, Cementos Lemona, Uniland, WRG, Alpine, etc.), was 16.6%. The fastest-growing area (not counting investments) was Construction: 22.6%.
 
As a result of the success of the Strategic Plan (2005-2008), international revenues doubled in importance to 18.1% of 2006 revenues (9.9% in 2005). Europe now accounts for 65% of FCC's international revenues.

Breakdown of revenues by business (million euro)
VENTAS% SOBRE VENTAS
DIC-06DIC-05% VARIACIÓN% sobre ventas DIC-06
Construction4.395,33.346,731,346,4
Environmental Services2.835,62.078,036,529,9
Versia867,1721,520,29,1
Cement1.466,6978,449,915,5
Torre Picasso19,518,18,10,2
Other(103,2)(52,9)95,3(1,1)
TOTAL9.480,97.089,833,7100,0

The backlog of works and services amounted to a record 30.510 billion euro at year-end, 48.9% more than at the end of 2005.
 
 
Construction

Construction experienced 31.3% growth in 2006 due to good performance by civil engineering (59% of the total) in Spain and other countries.
 
This division was particularly successful in Central and Eastern Europe, where in recent months FCC Construction has obtained major contracts such as the Basarab viaduct in Bucharest, Romania (135 million euro), the bridge over the Danube between Bulgaria and Romania (100 million euro) and a contract to build and operate a toll road in Austria (945 million euro).
 
Growth was driven fundamentally by Austrian subsidiary Alpine Mayreder BAU, which has been consolidated since 15 November 2006.
 
The breakdown of Construction revenues by project type is as follows:

  • Civil engineering: 59%.
  • Non-residential building: 27%.
  • Residential building: 14%.

Environmental services

Environmental Services attained 36.5% growth in revenues in 2006 as a result of organic growth and consolidation of acquisitions (ASA, Entemanser, Marepa, SmVAK, WRG, .).The breakdown of revenues is as follows: 

  • Urban sanitation: 46.7%.
  • Water: 25.1%.
  • International: 22.4%.
  • Industrial waste: 5.8%.

The international business now accounts for 24% of the total, with sizeable exposure to Europe (Eastern Europe and the United Kingdom).

Versia

Versia, which covers non-environmental services, increased revenues by 20.2% to over 867 million euro: 

  • Logistics: 38.5% of the total. It increased by 20.9% in 2006.
  • Handling: accounts for 21.3% of the total. It increased by 10.1% in 2005, supported by the business at Rome's airports (consolidated since 1 October).
  • Urban furniture accounts for 13.7% of the total. It expanded by 27.3% in 2006 as a result of the New York urban furniture contract.
  • Car parks: this business accounts for 8.3% of the total and expanded by 20.2% in 2006, supported by the on-street parking contract in Madrid. 
  • Maintenance and Systems: this area provides 6.6% of Versia's revenues, and it expanded revenues by 4.7% in 2006.
  • Vehicle testing: 5.1% of total revenues.  Growth in 2006 was 8.3%.
  • Mass Transport: 3.9%. Revenues increased by 10.5% in 2006.
  • SVAT. This area markets commercial vehicles. Until 2006, it was classified under "other". It accounts for 2.8% of Versia's total revenues.

Cement

Cementos Portland Valderrivas, S.A. attained 1,466.6 million euro in revenues in 2006, a 49.9% increase. It has consolidated 100% of Cementos Lemona since February 2006 and 100% of Uniland since August 2006.
 
This area attained 11.9% organic growth, supported by higher sales volumes and prices in the markets where it operates.
 
Acquisitions under the Strategic Plan boosted international revenues by over 22%.The Cement division has a strong position in the US eastern seaboard, where it has three cement plants, and in emerging markets such as Tunisia, Uruguay and Argentina.
 
 
Real Estate

FCC owns 80% of Torre Picasso, which is proportionately consolidated. Occupancy is currently 100% and monthly rents average close to 26 euro per square metre.
 
FCC controls 49.17% of Realia, which is equity-accounted. Realia's revenues amounted to 741.3 million euro in 2006, a 24.1% increase. It has consolidated SIIC de Paris since 1 June 2006.

Realia's contribution to the equity-accounted affiliates line-item amounted to 78.7 million euro (+16.6%).

 
Earnings

EBITDA totalled 1,387.3 million euro, i.e. 40.3% year-on-year growth, and the EBITDA margin was 14.6%, 0.7 points more than in 2005.

EBIT increased by 34.3% to 881.3 million euro and the EBIT margin was stable despite a sizeable increase in depreciation and amortisation.
 
Earnings before taxes (EBT) amounted to 886 million euro, a 27.3% increase.
 
The equity-accounted affiliates line-item includes the impact of Realia, which contributed 78.7 million euro, while Cementos Lemona is now fully consolidated and is no longer included under this line-item.
 
Earnings attributed to equity holders of the parent company amounted to 535.5 million euro, 27.1% more than in 2005.
 
Capital expenditure amounted to over 4,854 million euro, five times the 2005 figure.
 
At 31 December, the FCC Group had 92,565 employees, 25,003 more than in 2005.