| | |
|---|
| Revenues | 14,016 | +4.4% |
|---|
| Ebitda | 1,740 | -9.8% |
|---|
| Ordinary net income | 337 | -27.3% |
|---|
| Net debt | 6,900 | -11.3% |
|---|
| Backlong | 32,706 | +8.2% |
|---|
Fomento de Construcciones y Contratas, S.A. (FCC) obtained revenues amounting to 14,016.3 million euro in 2008, a 4.4% increase over the previous year*.
This increase is essentially the result of the sizeable international expansion of FCC's core activities (environmental services and infrastructure). International activities now account for 41.5% of the total, compared with 35% in 2007. Revenues from this area increased 22.5% to 5.815 billion euro (4.746 billion euro in 2007). FCC's international business has expanded 9-fold in the last 5 years.
Europe accounted for 88% of international revenues (including UK: 14%) and the USA for 6%.
* FCC's 2008 financial statements (and those for 2007 which are presented for comparison) reflect the adoption of the equity method for recognising companies under joint management in both years as it is considered to be a more accurate reflection of the Group's situation.
At 2008 year-end, FCC was jointly managing Realia. Therefore, Realia's contribution to earnings in 2008 is fully consolidated, whereas on the balance sheet at year-end it is equity-accounted.
BREAKDOWN OF REVENUES BY BUSSINES (million euro)
| | |
|---|
| Dec-08 | Dec-07 | % Change | % of revenues DIC-08 |
|---|
| Environmental Services | 3,633.3 | 3,464.7 | 4.9 | 25.9 |
|---|
| Versia | 897.4 | 923.2 | (2.8) | 6.4 |
|---|
| Construction | 7,744,0 | 6,922.2 | 11.9 | 55.2 |
|---|
| Cement | 1,425.1 | 1,790.8 | (20.4) | 10.2 |
|---|
| Realia | 402.3 | 472.4 | (14.8) | 2.9 |
|---|
| Torre Picasso | 26.2 | 21.8 | 20.3 | 0.2 |
|---|
| Other | (112.0) | (171.9) | (34.8) | (0.8) |
|---|
| TOTAL | 14,016.3 | 13,423.2 | 4.4 | 100.0 |
|---|
The backlog amounted to 32.706 billion euro, up 8.2% with respect to December 2007.
Environmental Services
Environmental Services attained 4.9% growth in revenues to 3,633.3 million euro; the breakdown is as follows:
- Environmental, Spain: 1,440.5 (39.6%)
- Environmental, international: 1,057.4 (29.1%)
- Water: 845.5 (23%)
- Industrial waste: 289.9 (7.9%)
Versia
Versia, which covers non-environmental services, saw revenues decline 2.8% to 897.4 million euro due to the November 2007 sale of the mass transit company CTSA.
- Logistics: 323 (35.9%)
- Handling: 252.8 (28.1%)
- Urban Furniture: 132.8 (14.7%)
- Car parks: 74.4 (8.2%)
- Maintenance and Systems: 49.9
- Vehicle testing: 46.2
- SVAT: 22
International revenues totalled 281.6 million euro, 31.3% of the total.
Construction
Construction experienced 11.9% growth in 2008, with revenues totalling 7.744 billion euro, of which 3,834.9 million euro (49%) were attained outside Spain.
The international business expanded 34%, while construction in Spain fell 3.7% after improving steadily over the year from a 16.6% decline in the first quarter of 2008.
The company's international presence is primarily concentrated in Europe, which accounts for 90% of the total.
The overall breakdown of Construction revenues by project type is as follows:
- Civil engineering: 62.3%.
- Non-residential building: 24.8%
- Residential building (homes): 12,9%
The backlog at 31 December amounted to 10.159 billion euro, broken down as follows:
- Civil engineering: 77.8%.
- Non-residential building: 16.4%
- Residential building (homes): 5.8%
Cement
Cementos Portland Valderrivas attained 1,425.1 million euro in revenues in 2008, a 20.4% decline with respect to the previous year due to the drastic reduction in residential building in Spain.
International revenues amounted to 339.9 million euro, 23.8% of the total.
Cement and clinker accounted for 65% of those revenues, concrete for 23%, mortar for 5%, aggregate for 4%, and other items for 3%.
Renewable energy
FCC owns 16 wind farms, of which 14 are fully operational, and two photovoltaic plants in operation. Total capacity is 487MW. The wind farm acquisition was completed on 8 January 2009. Those assets will be reflected in the 2009 accounts.
Torre Picasso
Torre Picasso has been fully consolidated since 25 July 2007, when FCC acquired the 20% it did not own. Revenues totalled 26.2 million euro, a 20.3% increase. The occupancy rate remained very close to 100% throughout the year.
Earnings
EBITDA amounted to 1.740 billion euro, a 9.8% decrease.
Breakdown of EBITDA by bussines (million euro) | Amount | % of total | EBITDA margin % |
|---|
| Environmental Services | 606.0 | 34.8 | 16.7 |
|---|
| Construction | 463.1 | 26.6 | 6.0 |
|---|
| Cement | 417.3 | 24.0 | 29.3 |
|---|
| Realia | 131.1 | 7.5 | 32.6 |
|---|
| Versia | 74.8 | 4.3 | 8.3 |
|---|
| Torre Picasso | 21.4 | 1.2 | 81.7 |
|---|
| Other | 27.2 | 1.6 | |
|---|
| TOTAL | 1,740.5 | 100 | 12,4 |
|---|
Earnings attributed to equity holders of the parent company, after deducting taxes and minority interests, amounted to 337 million euro, down 54.3% with respect to 2007. It is important to note that in 2007, 258.5 million euro was booked as extraordinary gains from the Realia floatation; as a result, ordinary net income in 2008 declined by 27.3%.
Investments to acquire new assets amounted to 873 million euro; the main items were in industrial waste management (123 million euro), toll road concessions (146 million euro) and renewable energy (140 million euro).
Net financial debt with recourse amounted to 5,327 million euro, i.e. 3.68 times EBITDA, while total net financial debt amounted to 6,900.6 million euro, 11.3% less than in 2007.
At 31 December, FCC Group had 93,510 employees, compared with 96,137 in 2007, in accordance with the new consolidation approach.
