Positives and negatives from Bouygues
By Helen Wright16 November 2012
French conglomerate Bouygues reported positive results for the nine-months to the end of September in its construction division, with increases in both sales and net profits, but less robust figures from its property and road building businesses.
Bouygues Construction saw solid momentum, with sales up 9% year-on-year for the period to €7.7 billion, while net profit was also up 9% to €174 million. The construction order book stood at €17 billion at the end of September this year, 12% higher than at the same point in 2011, with international markets accounting for 45%.
The company’s property division – Bouygues Immobilier – reported sales up 5% year-on-year to €1.6 billion, but a 4% fall in nine-month net profit to €75 million. Bouygues Immobilier said it had seen a 16% decline in commercial property sales, while residential sales had shown an 8% increase for the period.
Bouygues Immobilier’s order book stood at €2.9 billion at the end of September, up 9% year-on-year.
Meanwhile, the company’s road building unit, Colas, also reported an increase in sales but a drop in net profit. Sales stood at €9.7 billion for the nine-month period, up 5% year-on-year, but net profit dropped 14% to €172 million.
Bouygues said operating profit had been affected by delays in contract execution due to poor weather conditions in mainland France in the first half of 2012, as well as lower profitability on the sale of refined oil products. It added that the cost of raw materials used in refining activity had risen sharply and could only be partially passed on to customers.
Colas’ order book grew 5% year-on-year to €7 billion at the end of September.