Bouygues' lower expectations for 2013
By Helen Wright27 February 2013
Contractor Bouygues reported a 9% year-on-year rise in revenues from its construction division for 2012 to €10.6 billion, but said it was targeting a 1% increase for 2013 to €10.7 billion.
Net profit from construction rose 18% year-on-year in 2012 to €267 million, reflecting stable operating margins and the smooth execution of on-going contracts.
Bouygues said construction order intake stood 12% higher at the end of 2012 than a year earlier at €17.1 billion, with international markets accounting for 45%.
But despite similar momentum in full-year revenues for Bouygues’ road building division, Colas, the company also has lower expectations for 2013.
Colas recorded a 5% increase in sales for 2012 to €13 billion, but is expected to see a 1% increase this year to €13.2 billion. Net profit last year amounted to €302 million, 10% down on 2011, but the order book at 31 December, 2012, stood at €6.7 billion, up 4% year-on-year, with increases both in mainland France (up 5%) and on international markets (up 2%).
Bouygues said Colas had achieved its objective of breaking even again in Central Europe, and had also seen a good fourth quarter performance in France, offsetting the delays caused by poor weather in the first half of the year.
Meanwhile, Bouygues Immobilier, the company’s property development division, saw revenue decline 3% year-on-year in 2012 to €2.4 billion. But this division is expected to see more of a recovery in 2013, with a sales increase target of 4% to €2.5 billion.
Bouygues said a decline in residential property reservations had hit its Immobilier results in 2012, with the division’s net profit also dropping 11% compared to 2011 to €107 million.