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FCC obtained 95.6 million euro in net profit in the first half of 2009


FCC obtained 95.6 million euro in net profit in the first half of 2009

  • Income continued the rising trend observed since the beginning of the year.
  • Revenues amounted to 6.011 billion euro, an 8.9% decline.
  • International revenues accounted for 43.1% of the total.
  • The backlog increased by 6.9% to 34.960 billion euro at mid-year.
  • EBITDA amounted to 672 million euro.
  • Financial expenses were reduced by 8%.

FCC obtained 95.6 million euro in net profit in the first half of 2009; that was 52% less than in the same period of 2008 but is a continuation of the rising trend observed this year, since all earnings improved considerably in the second quarter with respect to the first.

Revenues in the first half amounted to 6,011.1 million euro, 8.9% less than in the same period of 2008.

This slight decline is due mainly to a 30.4% reduction in Cement revenues and lower revenues in domestic Construction (whose backlog nonetheless increased by 4.7% in the period) and the impact of the exchange rate on the International Environment business.

The international market, which accounts for 43.1% of the Group's revenues, performed solidly in the first half of the year, falling just 0.9% year-on-year (including the negative impact on the International Environment business of the pound sterling's 13.1% depreciation with respect to the euro). The International Construction business was very dynamic, and revenues increased by 1.7% with respect to the first half of 2008.

The backlog of works and services amounted to 34,960 million euro at 30 June 2009, 6.9% more than at 31 December 2008.

Breakdown of revenues by business (millones de euros)*

Jun. 09Jun. 08% Change
Environmental Services1,718.51,756.6(2.2)
Torre Picasso13.212.92.3

*Realia has been equity accounted since 1 January 2009. For comparison purposes, this note presents a pro-forma income statement for 1Q08 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.


Revenues in the Infrastructure area fell 9% to 3,331.8 million euro. As a result of expansion in Central Europe, over half of revenues came from outside Spain: 1,723.3 million euro (51.7%). Revenues in Spain decreased by 18.3% as activity was adjusted to customers' financing capabilities.

International activity focused on Europe, which accounted for 91% of the total: Austria represented 42%, Germany, 18%.

Civil engineering and residential building together accounted for 89% of total revenues. Civil engineering is expanding steadily due to a growing backlog of large infrastructure projects, which are technically more complex and provide greater added value.

Environmental Services

Revenues corrected slightly, by 2.2%, to 1.718.5 million euro overall, including almost stable performance in the domestic market (-0.8%) and a slight reduction in the international market (-4.6%) as a result of the pound sterling's 13.1% depreciation against the euro. At constant exchange rates, Environmental Services revenues would have increased by 0.7% in the first half of 2009, to 1,768.3 million euro.

The Environment unit in Spain registered steady 4.2% growth in revenues to 730.9 million euro, accounting for 42.5% of this area's total.

The International Environment area was impacted by the aforementioned exchange rate effect and revenues amounted to 479.6 million euro, 27.9% of the area total. At constant exchange rates, revenues would have decreased slightly, by 1.8%.

Water Management revenues increased by 3.5% due to this business's recurring nature and the start-up of new contracts.

Industrial Waste, which contributed just 6.5% of the business's total revenues, experienced a 15.9% decline due to lower waste volumes and the reduction in benchmark commodity prices (oil, paper and metals).

International revenues represented 34.6% of the total. The main foreign markets are the United Kingdom (55% of the total), Austria (8%), Czech Republic (15%) and the USA (7%).


Versia, the company that encompasses the non-environmental services, saw revenues decline by 13.4% to 396.8 million euro. This performance was due partly to the world economic contraction, which affected demand in the Urban Furniture area.

International revenues, which account for 31.3% of the total, came mainly from Handling (71.9% of the total) and Urban Furniture (53.9%).


Cementos Portland Valderrivas's market performed well in the second quarter, indicating a change in trend with respect to the first quarter. The decline in consumption decelerated and demand strengthened.

In this context, Cementos Portland Valderrivas obtained 537.3 million euro in revenues. Domestic revenues fell by less than the overall decline in domestic cement consumption, which is the result of the drastic adjustment in the residential construction industry in Spain since early 2008. Domestic sales amounted to 181.9 million euro in January-March and 204.9 million euro in April-June.

Foreign sales continue to grow in importance and amounted to 150.5 million euro (28% of the total).

The investment and stimulus plans announced and implemented in recent months by several governments (Spain and the US) should steadily impact the cement consumption trend in the second half of the year.

Renewable energy

This new line of business at FCC generated 39.7 million euro in revenues in the first half of 2009: 32.5 million euro from wind power and 7.2 from solar photovoltaic.

Torre Picasso

Torre Picasso, which is owned 100% by FCC, increased revenues by 2.3% to 13.2 million euro; occupancy of its 121,000 square metres of office and shop space is almost 100%.

Consolidated results

EBITDA amounted to 672.5 million euro, a 14.9% decline on the first half of 2008. The reduction in the first quarter was 17%. FCC is steadily improving performance this year, as the second quarter results were clearly better than those of the first quarter. The EBITDA margin was 11.2% (12.0% in the first half of 2008).

Personnel expenses in the period included 17.5 million euro in indemnities. As a result, the entire amount budgeted for this item in 2009 was spent in the first half.

Breakdown of EBITDA by business (million euro)

Amount% of totalEBITDA margin (%)
Environmental Services288.943.016.8
Torre Picasso11.21.785.2

Net financial expenses amounted to 157.3 million euro, 8.0% less than in the first half of 2008. This reduction in financial expenses was made possible by the reduction in the average cost of debt, supported by the Group's solvency and financial profile vis-à-vis its financiers.

Attributable net profit totalled 95.6 million euro, compared with 201.8 million euro in the same period of 2008, i.e. a 52.6% reduction but an improvement on the 60.5% decline in the first quarter. Income in the second quarter was practically double that in the first quarter, with positive month-on-month performance.

At 30 June, the net financial debt with recourse amounted to 6,316 million euro, i.e. 989 million euro more than in December 2008.