Solid 2011 for Bouygues construction

Bouygues construction reported year-on-year sales growth across all its subsidiaries in 2011, and a record order book resulted in the French contractor releasing a cautiously optimistic forecast for 2012.

The company said overall construction sales - including its Immobilier and Colas divisions - were up 6% in 2011, compared to 2010, to €24.4 billion, while operating profit was up 15% to €1 billion. The construction order book amounted to €24.8 billion, which the company said was a new record and represented a 10% increase on the end of December 2010.

In terms of divisions, Bouygues' road-building subsidiary Colas reported a 6% year-on-year increase in sales to €12.4 billion, representing an 8% increase from the French market and a 4% increase on international markets.

Colas' operating profit was up 28% compared to 2010 to €466 million, while the order book rose 5% to reach €6.5 billion at the end of December 2011. The order book increased both in France (4%) and on international markets (7%).

The construction sub-division reported a 6% increase in sales to €9.8 billion, representing a 5% increase from the French market and an 8% increase from international markets.

Operating profit for the division grew 12% year-on-year to €353 million and the order backlog was also 8% higher than at the end of December 2010 at €15.3 billion, with international markets accounting for half of the total.

And Bouygues Immobilier, the company's property development subsidiary, reported a 2% increase in sales to €2.5 billion, while operating profit fell 1% to €201 million.

The company said it saw growth resume in residential property sales, which rose by 2% overall and 11% in the second half of the year, while the commercial property business was boosted by the sale of two properties in France. The division's order book at December 2011 came to €3.1 billion, up 34% year-on-year.

Meanwhile, contractor Alstom - in which Bouygues holds a 30.7% stake - contributed €190 million to the group's net profit in 2011, compared with €235 million in 2010.

Looking ahead, Bouygues said it expected to see sales in its construction sub-division grow by 2% in 2012 with a target of €10 billion, while Colas is forecast to see a 1% increase in sales to €12.5 billion. Bouygues Immobilier is expected to see sales remain stable year-on-year.