Bouygues six-month results show sales growth
By Neill Barston28 August 2014
The chief executive of Bouygues has expressed cautious optimism on the company’s six-month results.
Martin Bouygues said the company “had become stronger since the start of the year” amid a 1% sales increase of €15.18 billion to June, against figures for the same period last year.
However, he highlighted continued economic difficulties in France that resulted in operating profit levels declining. The group’s figures were €134 million for the first six months of 2014, compared to €347 million profit for the first half of 2013.
The reduction in profit was largely attributed to sales losses within its telecommunications business.
Bouygues Construction’s order book was €28 billion at the end of June - up a total of 3% year-on-year. But within France, the company experienced a slowdown in public-sector orders following municipal elections.
There had also been a noticeable slowdown in the French market for road building schemes, coupled with an uncertain property market and a scarcity of larger projects emerging.
Sales within its construction business were up 2% at €11.9 billion. These were driven by international activity - up €9% year-on-year to €4.8 billion - which offset declines in France of 2% year-on-year to €7 billion.
Bouygues explained that its figures reflected a challenging economic backdrop, but he felt the group was in a promising position.
He said, “Although our operating performance reflects a more challenging economic and competitive environment in France, I believe that Bouygues has become stronger since the start of the year.
“Our construction businesses are increasing their international presence, Bouygues Telecom is successfully rolling out its aggressive strategy and Alstom will offer good growth and upside potential following the deal with General