Solid performance from FCC
By Helen Wright29 July 2011
FCC reported net profit of € 100,9 million for the first half of 2011, a +6,7% increase over the same period of 2010, as the contractor continued to expand its international business.
However, revenues for the first six months of the year were -4% down on the same period in 2010 at € 5,5 billion. The company put this down to a decline in its infrastructure business in Spain, together with a seasonal downturn in its energy division.
Activity outside Spain continued to grow, accounting for € 2,7 billion (49,5%) of group revenues, an increase of +8,3% year-on-year.
International revenues are concentrated in Europe, which accounted for 83,7%, principally in the company's construction and environmental services divisions. The remaining 16,3% came from North and South America, while 5% came from Asia and Africa.
FCC said it secured international infrastructure projects worth over € 2,2 billion during the first half, including a € 1,2 billion contract to build a 66 km rail line in Algeria. The company also formed an alliance with Abu Dhabi-based contractor Commodore to develop infrastructure in the United Arab Emirates.
The strategic agreement will see the companies bid jointly for infrastructure development projects in the region, targeting plans for new rail, road and port infrastructure.
Overall, FCC's order backlog stood at € 37 billion at the end of the first half.
Chairman and CEO Baldomero Falcones said the results reflected the company's efforts to improve efficiency. "This initiative is essential not only to enable us to defend market share in countries where we are the main operator, but also to make us more competitive as we internationalise," he said.