Vinci forecasts flat 2012

Despite reporting strong business momentum in its 2011 results, French contractor Vinci expects to see a flat year in 2012 amid uncertainty over the outlook for economic growth in Europe.

For 2011, the company reported a 7.2% year-on-year increase in net income to €1.9 billion, while revenues rose by 11% to €37 billion. Of this, contracting revenues rose 12% to reach €31.5 billion, while the concessions revenues were up 3.9% to €5.2 billion.

Vinci Construction's operating income was €630 million, up almost 8% compared with 2010, reflecting strong results both in France and internationally.

Overall, revenues from within Vinci's domestic market totalled €23.6 billion, up 12.6% year-on-year, while revenues generated outside France rose 7.5% to €13.4 billion.

Meanwhile, the company's order book at the end of the year jumped 18% to reach €30.6 billion. But despite starting 2012 with the highest order book it has ever recorded, Vinci played down its outlook for the next 12 months.

"With greater uncertainty surrounding prospects for economic growth in Europe, there could be a downturn in orders in some segments and geographical areas during the year," the company said.

"Against this backdrop, the group projects that business should be at least flat in 2012. Vinci remains confident and has established as a 2012 objective the maintenance of its operating margins at the good levels achieved in 2011."