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FCC increases profit in the first quarter by 10% to 40.5 million euro


FCC increases profit in the first quarter by 10% to 40.5 million euro

FCC obtained a profit of 40.5 million euro in the first quarter of 2011, an improvement of 9.8% compared with the same period of 2010. These results reflect the positive performance of the more recurring businesses such as Environmental Services, where EBITDA expanded a notable 11.5%, broadly offsetting the impact of the decline in activity in the Construction and Cement areas in Spain.
FCC increases profit in the first quarter by 10% to 40.5 million euro

FCC Chairman and CEO, Baldomero Falcones: "These first-quarter figures reflect the Group's commitment since inception to geographic and sectoral diversification, and efforts to manage costs and the balance sheet."

EBITDA amounted to 291.7 million euro in the period, i.e. a 4.2% decline compared with 1Q10, but the EBITDA margin improved by 0.1 percentage points to 11.9%. Adjusting for the decrease in consolidation scope due to divestments at FCC Versia, EBITDA would have declined by just 2.1%.

EBITDA expanded by 5.7% in the Services and Energy areas as a result of the excellent performance by the Environmental Services division, which expanded by 11.5%. Services and Energy represent 64.9% of total EBITDA. EBIT in 1Q11 totalled 119 million euro, up 1% year-on-year.

Revenues amounted to 2.459 billion euro in the period, a decline of 4.9% with respect to 1Q10. This performance reflects the combined effects of sustained growth in the Environmental Services division (+2.2%) and in the Construction and Cement divisions outside Spain (+8.9%), and the slowdown in activity in the latter two areas in Spain. Lower wind levels reduced the Energy division's revenues.

The decline in revenues at Versia is attributable to the sale of some of its activities at the end of 2010. In like-for-like terms, Versia's revenues expanded by 2.6%. The application of international accounting standards to operating permits for certain Versia contracts is behind the downward adjustment in 1Q10 figures (net profit of 36.9 million euro).

Net debt totalled 8.230 billion euro, down 1.8% with respect to March 2010. This year-on-year decline is attributable to the seasonal fluctuations in working capital in the Construction division: it tends to expand in the first half of the year and then decline, in line with previous years.

Activity outside Spain continued to grow, accounting for 45.9% of Group revenues, an increase of 8.5%. Foreign revenues are concentrated in other European countries, which accounted for 83.7%, the bulk of which comes from the Construction and Environmental Services divisions. The remaining 16.3% comes from America (4.9% in the US and 6.0% in Latin America) and Asia-Africa (5.4%).
Milestones in the quarter
FCC obtained international construction projects valued at over 2.150 billion euro

Intense bidding activity was rewarded with total order intake amounting to more than 2.150 billion euro of infrastructure projects throughout the world. FCC, through subsidiary Alpine, obtained a contract worth over 80 million euro to expand a chemical plant in Abu Dhabi. The company was also awarded two new projects for the comprehensive refurbishment of several historic zones in Panama City, Panama, valued at 275 million euro.
FCC maintains strong growth in railway construction contracts

In the first quarter of 2011, the infrastructure division obtained notable railway construction contracts worth over 1.800 billion euro, in addition to the major contracts awarded in 2010 (over 3.100 billion euro). The company, acting as part of a consortium, obtained a 304 million euro contract to build two tunnels and the Highway 407 station of the Toronto Metro (Canada). In March, a consortium in which FCC participates was awarded a contract to build a 66 km railway line in Algeria for 1.232 billion euro; this is the company's second major rail contract in that country (it was awarded a contract for over 930 million euro in May 2010). Also in March, FCC was awarded a 267 million euro contract to build a section of Bucharest Metro's line 5 in Romania.
FCC signs a strategic agreement to develop electric mobility infrastructure

FCC signed a strategic agreement with Siemens to develop and implement electric mobility technology, which includes jointly conducting research.  FCC will also build the necessary infrastructure in the future, through its environmental services division and the recently-created FCC Industrial division (part of the Construction area) when the installations are to be rolled out.
FCC awarded waste collection contract in San Sebastián

In January, the San Sebastián city government chose FCC to provide municipal solid waste collection, transport and related services in the city. The 10-year contract, which may be extended, represents total revenues of 46 million euro.
FCC Energy completes the financing for its first solar thermal energy plant

FCC Energy, together with partner Mitsui, completed financing for the Guzmán plant in Córdoba with a 226 million euro loan from a group of Spanish and Japanese institutions. Japan's state insurance company, NEXI, guaranteed the loan, which provides very advantageous long-term financial conditions.