Vinci first quarter revenues rise

27 April 2012

French contractor Vinci reported a 6% year-on-year jump in revenue for the first three months of 2012 to €8.1 billion, driven by solid growth in its contracting and concessions divisions.

Contracting revenue increased 4.7% compared to the first quarter of 2010 to €6.9 billion, of which Vinci Energy contributed €2 billion (up 1.7% year-on-year), while the road building division Eurovia contributed €1.4 billion (a decrease of 3.2% year-on-year) and Vinci Construction contributed €3.5 billion (up 10.3% year-on-year).

Vinci said the significant increase in construction revenues was down to growth in France's building sector, particularly the private non-residential segment, while the drop in road building revenues from Eurovia was attributed to a decline in activity in Slovakia, the Czech Republic and the UK.

Meanwhile in concessions, revenue was €1.2 billion, up 2.1% compared with the first three months of 2011.

Overall, Vinci saw domestic revenues rise 8.1% compared to the first quarter of 2011 to total €5.4 billion, while 2.2% growth was recorded in international revenues, which stood at €2.8 billion at the end of March.

Vinci's order intake for the quarter was €8.6 billion, representing a 14% year-on-year rise. The total order book at the end of March was €32.6 billion, up 22% compared to the same point last year.

Looking ahead, Vinci said its strong order intake gave it good momentum to the end of the year and beyond.

But the contractor warned, "Nonetheless, the uncertainties surrounding economic growth in Europe and, in particular, policies aimed at reducing public deficits, require caution with respect to certain countries and business sectors.

"Against this backdrop and given the level of contracting activity during the first quarter, the group could experience a slight increase in its overall full year 2012 revenue, with the objective of keeping its operating margins at the good levels achieved in 2011," it said.

Swiss acquisition

Meanwhile, Vinci announced it had acquired energy and communication infrastructure business Energieversorgungstechnik (EVT) from Swiss company Alpiq. EVT itself is based in Germany, and generated revenue of €512 million in 2011 along with earnings before interest, tax, depreciation and amortisation (EBITDA) of €37 million.

The deal - based on an equity value for EVT of €195 million and estimated liabilities of €45 million - strengthens Vinci's operations in Germany, its second largest market, where it generated 2011 revenue of €1.2 billion.

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