FCC success abroad
By Sandy Guthrie14 November 2011
Services and construction group FCC reported profit of €178 million for the first nine months of 2011 - a 6.9% lower figure than in the same period of 2010 - while its revenues outside Spain have exceeded those in its home country for the first time.
Meanwhile, it has said that its FCC Energía and US cement firm Giant are both up for sale.
The group said that in a challenging economic climate, it made progress in its global expansion, with revenues outside Spain increasing by 9.9% and the international backlog by 11%, offsetting the decline in infrastructure-related demand in its home market.
Revenues from outside Spain amounted to €4.31 billion. FCC claimed a milestone in that for the first time in its more than 100-year history, revenues from outside Spain accounted for more than half of the total, at 51%.
As a result, its international backlog amounted to €5.08 billion, which FCC said amounted to three out of every four new contracts coming from outside Spain.
The group reduced its net financial debt by 10.6% year-on-year to €7.79 billion, which it said was similar to the figure at 31 December, 2010, and very close to the target set by the group for 31 December, 2011.
FCC said the assets and liabilities corresponding to FCC Energía and cement activities in the US (Giant) had been designated as "discontinued operations" in the consolidated financial statements and classified as available for sale.
Baldomero Falcones, FCC's chairman and CEO, said, "The results reflect the company's strategic commitment to internationalisation, financial stability and efficiency. These quarterly earnings reflect our goal of financial consolidation, by managing the cash flow, maintaining capital expenditure below depreciation and amortisation, and selling non-core assets."
FCC claimed that consolidated accounts also reflected "notable improvements in efficiency, supported by a technology platform that leveraged synergies between its various activities".
In the first three quarters of this year, sales outside Spain were concentrated mainly in Europe (86% of the total), followed by the US (2.9%), Latin America (6.6%), and Asia and Africa (4.7%).
FCC's construction obtained €4.65 billion in revenues, of which €2.97 billion were obtained outside Spain. EBITDA (earnings before interest, taxes, depreciation and amortization) amounted to €231 million in the period.