Eiffage Q3 revenues up
By Helen Wright16 November 2010
Eiffage offset a decline in its construction division to post an overall revenue increase of +2,2% in the third quarter.
The French construction and concessions group reported € 3,4 billion in third quarter group revenues, while sales for the nine months ended 30 September stood at € 9,8 billion for the period, up +0,2% year-on-year.
Eiffage's public works division, which engages in public construction and infrastructure projects, was the main engine for group growth.
Revenues at the unit increased +11% to € 1,1 billion in the quarter, and +7,7% to € 2,9 billion in the nine-month period on the back of higher sales in road construction and civil engineering activities in France.
But declining sales in Eiffage's construction division offset increases elsewhere.
Construction revenues slipped -4,4% to € 831 million in the third quarter, and fell -7,2% to € 2,6 billion for the nine-month period.
Eiffage said the trend for decreasing construction sales in France had continued, although levels of order intake "remained satisfactory".
The group's order books at 1 October totalled € 9,9 billion, an increase of +3,6% against last year.
During the third quarter, Eiffage said it won the contract to renovate and convert the site of the Hôtel-Dieu hospital in Lyon - a € 150 million development featuring a luxury hotel, plus commercial and retail premises.
Meanwhile, Eiffage's energy division was impacted by weak conditions in the industrial sector and reported a -2,1% decline in sales for the nine-month period to € 1,8 billion.
The metal division fared better, reporting a 4,5% increase in revenue to € 538 million for the nine months ended 30 September.