The FCC Group obtained 108 million euro in net profit in 2011, after a 301 million euro pre-tax adjustment at Cementos Portland Valderrivas. But for that adjustment, the Citizen Services group would have reported 316 million euro net profit, 15 million euro more than in 2010.Net financial debt declined by 19% to 6.277 billion euro, and that figure should improve considerably with the Spanish government's plan to ensure payment to suppliers of the Public Administrations.

FCC, S.A., the group's parent company which distributes the dividends, obtained net profit of 236 million euro in 2011. The company paid an interim dividend of 0.65 euro gross per share on 10 January, and the next Shareholders' Meeting will decide on the supplementary dividend proposed by the Board of Directors. The total dividend in 2011 was 1.43 euro per share, resulting in a dividend yield of 7.2%, i.e. one of the highest among Ibex 35 companies.

Revenues amounted to 11.755 billion euro, just 1.3% less than in 2010. The total is attributable to 13.6% growth in international revenues, which almost entirely offset the decline in Spain. International revenues already account for 52.4% of FCC's total. The greatest growth in revenues was in America (+48%), Eastern Europe (+16.4%), the UK (+9.2%) and Austria and Germany (+5.1%).

The steady improvement in margins in environmental and municipal services (including the end-to-end water management division, Aqualia) offset the decline in infrastructure-related demand in Spain in EBITDA terms. Group EBITDA was 1.252 billion euro, a 6.6% decline on 2010. Services accounted for 65% of the total, and Infrastructure for 35%. This breakdown does not include the Energy area, which is classified as a discontinued activity.

The accounting adjustment at Cementos Portland Valderrivas, together with other income from asset sales, had a -208 million euro impact on FCC Group EBIT, which declined to 400 million euro.

Including financial income, the tax expense, and 33 million euro in income from equity-accounted affiliates (Proactiva, Globalvía and Realia), FCC's net profit attributable to the parent company amounted to 108 million euro, down 64% year-on-year. However, excluding the adjustment at CPV, group net profit would have been 316 million euro, exceeding both 2010 and 2009.

Sharp debt reduction

The group sharply reduced interest-bearing debt in 2011. Debt declined 19% to 6.277 billion euro, through a combination of operating free cash flow and divestment of non-core assets. This figure reflects the deconsolidation of FCC Energía and Giant (which owns the cement plants in the US), which are classified as discontinued activities, and whose debt at 31 December 2010 totalled 572 and 311 million euro, respectively.

The breakdown of debt by business area is in line with each area's nature, cash flow, and asset volume. Environmental Services accounts for 68.8% of the debt, linked to regulated long-term public services contracts. Cement accounts for 15% and Construction for just over 10%.

As a result of strict capex control, investing cash flow was 5.2 million euro which was self-financed since it is less than the amount of depreciation and amortisation; divestments totalled 575 million euro, from the sale of on-street car parks (Eysa), Torre Picasso, and other real estate assets.

The backlog totalled 35.238 billion euro, on par with the previous year despite the decline in order intake in Spain, and represents 6.9 years of activity in services and almost 1.5 years in infrastructure. Two-thirds of the backlog corresponds to services and the other one-third to infrastructure. International activity expanded by 8.5% in 2011.