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FCC obtains net profit of 16.6 million euro in the first quarter


FCC obtains net profit of 16.6 million euro in the first quarter

  • Revenues from outside Spain expanded by 15.6% and accounted for 53.1% of the total.
  • Net interest-bearing debt declined by 5.6% year-on-year to 6.964 billion euro.
FCC obtains net profit of 16.6 million euro in the first quarter

FCC obtained 2.406 billion euro in revenues in the first quarter of 2012, i.e. on par with the same period last year, with international revenues increasing by 15.6%. EBITDA amounted to 241 million euro, i.e. down 13.8%, due primarily to the decline in the Cement and Urban Furniture activities.

This performance was offset by the improvement in Construction EBITDA, which expanded by 10% and reflects a return to growth for the first time since early 2009. This is attributable to the improvement in EBITDA in Central and Eastern Europe, where Alpine operates. Environmental Services reported solid underlying performance, with EBITDA up 4%, accounting for 62% of the Group total.

FCC obtained net attributable profit of 16.6 million euro in the first quarter, i.e. a decline of 23.9 million euro year-on-year, reflecting the impact of the company's most cyclical activities.

The positive performance of infrastructure and environmental services activities outside Spain offset the 14.4% decline in revenues in Spain, mainly attributable to the construction and cement divisions. International revenues accounted for over 53% of the total, reinforcing the internationalisation strategy of FCC, the Citizen Services Group.

By geographic area, growth was notable in America and in other new markets, where revenues doubled with respect to 1Q11 due to progress with large infrastructure projects and to the good performance of the industrial waste management and urban furniture businesses in the US. Revenues in the UK improved by 15.5%, driven mainly by the construction of a new waste treatment plant and several other infrastructure projects under way.

Net interest-bearing debt amounted to 6.964 billion euro at 31 March 2012, i.e. 414 million euro (5.6%) less than at 31 March 2011 but 686 million euro more than at the end of 2011, due primarily to the increase in working capital in the Construction area. Nevertheless, debt will decline considerably when the Spanish government's plan to pay the suppliers of city and regional governments is implemented. Debt collection under that plan, which will commence in the coming weeks, will have a significant effect on cash and debt.

At the end of the quarter, the Group's backlog totalled 35.802 billion euro, equivalent to three years' revenues.

Notable events

  • Progress with the Spanish government's plan to pay the debts of the city regional governments. Two Royal Decrees were approved in February and March to regularise the debts owed by regional and local governments to their suppliers. Having completed the required paperwork, the Supplier Payment Fund is expected to pay local government debts as from the end of May, and regional government debts one month later.
  • First water contract in the United Arab Emirates. FCC subsidiary Aqualia was awarded a contract in January to manage the sewage and water treatment system in eastern Abu Dhabi (UAE). This contract includes the operation and maintenance of more than 2,400 km of sewers, 68 wastewater pumping stations and 19 wastewater treatment plants in the city of Al Ain.
  • New railway infrastructure contract. Romania's National Railway Company (CFR) has awarded FCC a 246 million euro contract to refurbish and upgrade the Simeria-Braşov railway line. Other notable contracts obtained in 2011 include several adjudications in Algeria totalling more than 2 billion euro; the construction of two tunnels and the Highway 407 station on the Toronto subway (Canada) for 304 million euro; and the Olsztyn tramway (north of Warsaw) for 62.5 million euro.
  • The cement division implements its 2012-2013 New Val industrial plan. Cementos Portland Valderrivas, the listed company which heads the FCC Group's cement division, implemented its 2012-2013 New Val operational restructuring plan. The objective is to adapt CPV's operating structure to the market situation. The strategy seeks to increase EBITDA by 60 million euro starting in 2013.
  • FCC strengthens its international commitment, analysing and bidding for projects worth more than 10 billion euro. FCC, the Citizen Services Group, has increased the volume of projects under analysis in selected growth markets, outside the markets where it already operates (mainly in the Euro area), with a view to accelerating geographic diversification and pursuing sustained medium-term growth. In the first quarter, the company participated in tenders in America, especially North America (USA, Mexico and Canada).

(million euro)
Mar. 2012
Mar. 2011
Chg. (%)
Net sales
Income attributable to equity holders of the parent company
Total interest-bearing debt