ACS margins hit
By Helen Wright10 May 2012
Spanish contractor ACS reported a 1.3% year-on-year increase in first quarter net profit to €207 million, but saw its net profit margin slip from 5.5% to 2.3% as a result of losses at its German subsidiary Hochtief.
Hochtief reported a first quarter net loss of €34 million, after its own results were dragged down by long-standing project overruns at its Australian subsidiary, Leighton, which also reported a first quarter loss.
Meanwhile, ACS, which consolidates Hochtief's results within its own since gaining majority control of the company in June last year, reported first quarter sales of €9 billion, up 145% year-on-year. Hocthief contributed €5.6 billion to the first quarter sales figure, and ACS's overall sales growth on a comparable basis was 5%.
ACS added that 79% of its revenues were generated internationally, up 13.5% year-on-year, while activity in Spain decreased by 17.8%.
The group's backlog also jumped to €68 billion, compared to €28 billion a year ago - again, as a result of the acquisition of Hochtief, which contributed €42 billion to the total.
During the first three months of the year, ACS also sold 23.5% of its stake in service provider Clece for €506 million, 10% of its stake in contractor Abertis for €191 million and 3.7% of its stake in utility company Iberdrola for €800 million.
