Mixed results at Ferrovial construction

Continuing decline in domestic demand has hit Spanish contractor Ferrovial’s construction division during the first quarter, with revenues down 6% year-on-year to €820.5 million.

However, earnings before interest, tax, depreciation and amortisation (EBITDA) in the construction division were up 7.3% compared to the first three months of 2012, to €55.1 million.

Ferrovial said a positive performance from its international business, especially in the US, partly offset lower activity in Spain, where the market saw a 45% decline in public tenders in 2012.

Ferrovial Agroman, the company’s core infrastructure and construction business, reported an 8.3% drop in revenues for the first three months of the year to €474 million, while EBITDA was up 26% to €41 million.

However, the company reported a significant drop in activity from Poland due to a decline in highway construction contracts. Budimex, the company’s Polish road building business, reported a 22% year-on-year decline in revenues for the first quarter to €119 million, while EBITDA halved year-on-year to €7.4 million.

Meanwhile, Webber – the company’s US construction operation – reported a 36% rise in revenues for the period to €158 million, while EBITDA was up 47% to €7 million.

Overall, the construction backlog decreased 2.5% compared to the end of the first quarter in 2012 to €8.5 billion, of which over 70% came from outside Spain – particularly toll road projects in Canada and the US.