Spain's FCC posts 12.4 percent net profit drop

11th November 2011, Comments 0 comments

Spanish construction and services group FCC said Friday its net profit dropped 12.4 percent to 175.8 million euros during the first nine months of the year, with the results buoyed by the expansion of its international activities.

The company said revenues from outside Spain accounted for more than half the total during the period for the first time in its over 100-year history.

Revenues during the first nine months of the year fell 2.8 percent to 8.4 billion euros ($11.4 billion), with 51 percent coming from its activities outside Spain.

Sales outside Spain were concentrated mainly in Europe, which accounted for 86 percent of the total, followed by the United States with 2.9 percent, Latin America with 6.6 percent, and Asia and Africa with 4.7 percent.

"The results reflect the company's strategic commitment to internationalisation, financial stability and efficiency," said FCC chairman and chief executive officer Baldomero Falcones.

At the end of 2010, 46 percent of FCC's revenues came from international markets.

FCC began to expand internationally in 2005. It is present in over 50 countries, according to its website.

Spain has suffered a decline in infrastructure-related demand since the collapse of a property boom in 2008 plunged the country into recession. It stabilised in 2010 but growth remains anaemic.

Economic growth ground to a halt in the third quarter after posting only timid gains in the first two quarters of 2011.

© 2011 AFP

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