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FCC obtained net profit of 202 million euro in the first nine months of 2009


FCC obtained net profit of 202 million euro in the first nine months of 2009

  • Net profit in the third quarter outstripped the sum of the two previous quarters
  • Revenues declined 8.6% to 9.335 billion euro
  • International revenues accounted for 44% of the total
  • The backlog increased by 7.3%
  • The EBITDA margin remained practically stable
  • Financial expenses were reduced by 13.6%


FCC's net attributable profit in the third quarter of 2009 amounted to 106.36 million euro (compared with 33.1 million euro and 62.5 million euro in the first and second quarters, respectively). The total in 9M09, 201.9 million euro, reflects a 32% decline with respect to last year, although it does clearly demonstrate an upward trend. Profit in the third quarter of 2009 increased 11.5% with respect to the same period in 2008.

FCC revenues in the first nine months of 2009 totalled 9,344.9 million euro, 8.6% less than in the same period last year, primarily due to a 13.2% decline in revenues in Spain resulting from the slowdown in construction and in cement consumption.

The international business, which accounted for 44.2% of the group's total revenues, performed in line with the same period last year, falling just 2.0% as a result of the 11.9% depreciation of the pound sterling against the euro, which impacted the International Environmental area. International revenues would have remained stable at constant exchange rates.



Breakdown of revenues by business (millones de euros)*

  Sept.09 Sept.09 % Change  
Infrastructure 5,244.0 5,787.8 (9.4)  
Environmental Services 2,658.5 2,699.3 (1.5)  
Versia 606.7 677.4 (10.4)  
Cement 800.8 1,121.2 (28.6)  
Energy 56.0 N/A N/A  
Torre Picasso 19.7 19.5 0.99  
Other (50.8) (92.0) (44.8)  
TOTAL 9,334.9 10,213.2 (8.6)  

*Realia has been equity accounted since 1 January 2009. For comparison purposes, this note presents a pro-forma income statement for 9M08 in which Realia is equity-accounted.

The Renewable Energy business came into operation at the end of 2008 and has been classified as a separate division since 1Q09.

The backlog of works and services amounted to 35,103.2 million euro at 30 September 2009, 7.3% more than at 31 December 2008.


Revenues declined by 9.4% to 5,244.0 million euro. Revenues from outside Spain accounted for more than half of the total: 53.0%, having increased slightly, by 0.2%.

Of the 2,782.3 million euro in revenues from other countries, 92% were obtained in Europe (42% in Austria and 18% in Germany). The Americas and Asia (Gulf countries, China, India and Singapore) accounted for 8%.

Environmental Services

Revenues totalled 2,658.5 million euro, down a mere 1.5% with respect to last year, attributable to the incipient growth in revenues in Spain (0.3%) and a slight reduction in international revenues (-4.8%). The latter figure reflects the negative effect of depreciation by the pound sterling vs. the euro (11.9%) with respect to the first nine months of 2008.

International revenues accounted for 34.6% of the area's total. The main foreign markets are the United Kingdom, in the area of waste management and municipal services (56% of the total), Austria (8%: ASA in waste management), and the Czech Republic (15%: SmVAK in end-to-end water management). Additionally, the industrial waste management business in the US (Hydrocarbon Recovery Services) contributed 7% of foreign revenues.

The Environmental unit in Spain registered slight growth in revenues (3.5%) to 1,105.3 million euro, accounting for 41.6% of this area's total.

The International Environment area was impacted by the sterling exchange rate effect. International revenues amounted to 743.1 million euro, 27.9% of the total.

Water management revenues increased by 5.1% due to the stability of the distribution concessions and to the start-up of new contracts.

The Industrial Waste unit obtained 174.5 million euro in revenues, a decline of 19.9% as a result of the lower volume of waste processed.


Versia, which covers non-environmental services, obtained revenues amounting to 606.7 million euro, a decrease of 10.4% attributable to the economic slowdown, which has impacted demand for advertising space in the Urban Furniture area and also affected the Logistics and Handling area (albeit to a lesser extent). In contrast, revenues increased by 12.1% in Vehicle Inspection and 5.3% in Car Parks.

International revenues represented 31.8% of the total, mainly in Handling (where they accounted for 71.1% of the total) and Urban Furniture (55.6%).


Revenues in the Cement area fell by 28.6% to 800.8 million euro, but the decline observed in previous quarters is decelerating. This performance is the result of a 34.0% reduction in domestic business and a 10.1% reduction in international business.

Domestic revenues declined by 30.2%, i.e. not as far as overall domestic cement consumption (-36.8%) has fallen as a result of the drastic adjustment in the residential construction industry in Spain since early 2008. In quarterly terms, domestic revenues amounted to 181.9 million euro in 1Q09 (-41.5%), 204.9 million euro in 2Q09 (-31.7%) and 186.3 million euro in 3Q09 (-27.4%).

International revenues gained in importance, amounting to 227.7 million euro, 28.4% of the total. The change in revenues reflects the positive impact of the exchange rate effect (the dollar appreciated by 11.6% in the period) and a deceleration in demand in the US (-34.5% in local currency terms).

In addition to the gradual stabilisation of building activity in Spain, the investment and stimulus plans implemented in recent months by several governments (Spain and the US) should contribute first to stabilising demand and then to a recovery.

Actions undertaken by Cementos Portland Valderrivas to optimise energy management and CO2 emissions allowed the replacement of fossil fuels with non-pollutant fuels to expand by more than 50% in the last year.

Moreover, integrated environmental authorisations were obtained for factories in Mataporquera (Cantabria) and El Alto (Madrid), which will allow the use of carbon-free sub-products and raw materials.

Renewable energy

Revenues amounted to 56.0 million euro, of which 44.3 million euro (79.1%) were from wind power and the other 11.7 million euro were from solar photovoltaic. Comparisons with the previous year are not available given that the energy division was included as an independent item in FCC's consolidated accounts starting in January 2009.

Torre Picasso

Torre Picasso increased revenues by 0.9%, with an occupancy rate of close to 100% at the end of September and rents that slightly exceeded last year's figures.


EBITDA amounted to 1,052.8 million euro in the first nine months of 2009. The EBITDA margin was 11.3%, just 0.2 percentage points lower than in the same period of 2008.

The EBITDA margin was kept stable due to a 0.4 percentage point improvement in the Environmental Services division, where a number of assets in the more profitable waste management activities in Europe were brought into operation, a 0.1 percentage point improvement in Construction as a result of greater exposure to civil engineering, and the positive impact of incorporating the Energy division in January.

EBITDA in 9M09 also included 22.6 million euro of non-recurring personnel expenses (indemnities), compared with the 13.5 million euro budgeted in the period. Excluding these indemnities, the EBITDA margin would have been 11.5%, the same as in 9M08.

Breakdown of EBITDA by business (million euro)

  Amount % of total EBITDA margin (%)
Infrastructure 279.2 26.5 5.3
Environmental Services 453.0 43.0 17.0
Versia 34.9 3.3 5.8
Cement 230.9 21.9 28.8
Energy 44.5 4.2 79.5
Torre Picasso 17.1 1.6 86.6
Other (6.8) (0.6)  
TOTAL 1,052.8 100% 11.3

Net financial expenses amounted to 225 million euro, 13.6% less than in the first nine months of 2008, due to lower interest rates and effective management of the Group's finances.

Attributable net income in the first nine months of 2009 amounted to 201.9 million euro, 32.0% less than in the same period of 2008, mainly as a result of the deceleration in Cement and Versia and the negative contribution of equity-accounted companies.

Nevertheless, attributable income increased steadily from quarter to quarter, rising 11.5% in the third quarter with respect to the same period of 2008.

At 30 September, net interest-bearing debt amounted to 8,296.8 million euro, i.e. 1,396.2 million euro more than at the end of December 2008. This increase is due mainly to the acquisition (for 785 million euro) and consolidation of the Olivento group in the renewable energy area.

Environmental Services and Energy together account for 60.3% of net debt, connected to stable, regulated long-term public utility contracts.

Moreover, 2,014.7 million euro of net debt (24.3% of the total) are without recourse (i.e. project finance).

The total number of employees at 30 September was 95,233, compared with 96,248 a year earlier.