Vinci warns on taxes

By Helen Wright26 October 2012

French contractor Vinci has warned that its full-year net income could decrease by as much as 4% year-on-year if the French government enacts new taxes that are aimed at reducing the country’s budget deficit.

“On-going discussions surrounding the proposed 2013 French Finance Law imply that these new charges could negatively impact VINCI’s 2012 net income, which could be down by 3% to 4% compared to its 2011 level,” Vinci said.

The company, which reported revenues for the nine months to 30 September, 2012, of €28.2 billion – up 5% year-on-year – said its net income could be close to the levels reached in 2011 (€1.9 billion) if the proposed law was not to come into force.

Meanwhile, in its domestic market Vinci said revenues were €17.9 billion for the nine-month period, up 4.5% against the same period last year. Revenues generated outside France stood at €10.3 billion, up 5.5% year-on-year. Of this, revenues generated in Europe (excluding France) were €6.7 billion, down 1% year-on-year, while revenues generated outside of Europe jumped more than 20% to €3.6 billion.

Vinci’s order backlog at the end of September stood at €32.8 billion, up 9.5% compared to the same point in 2011.

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