Spain's FCC first half profit rises 6.7 percent

28th July 2011, Comments 0 comments

Spanish construction and services group FCC reported Thursday a 6.7 percent rise in first half net profit as its energy and environmental services units offset declines in building related activities.

The company posted a net profit of 100.9 million euros ($145.9 million) during the first six months of the year on sales of 5.48 billion euros, a 4.1 percent drop over the same time last year, it said in a statement.

Earnings before interest, tax, depreciation and amortisation (EBITDA), a key measure of profitability, dropped 0.1 percent to 678.4 million euros.

"The first half results reflect the positive evolution of the most important units, services and energy, which saw EBITDA rise significantly, by 6.1 percent, which compensated almost entirely for the drop in activity in Spain in the construction and cement sectors," the statement said.

FCC has re-positioned itself in renewable energy and waste management to shield itself from a sharp drop in construction activity in Spain following the collapse of a property bubble at the end of 2008.

It has also sought to expand its international profile at the expense of its domestic activities in Spain.

Sales by FCC's construction branch in Spain dropped 23.8 percent to 1.11 billion euros during the first half of the year. Sales by the unit outside of Spain rose 10.3 percent to 1.77 billion euros.

FCC signed a contract worth 1.2 billion euros during the first half of the year to build a railway line in Algeria and struck a deal with Abu Dhabi Commodore to develop infrastructure projects in the United Arab Emirates.

© 2011 AFP

0 Comments To This Article