At euros 112.8 million, Ferrovials net income is up 55.7% in the first nine months of the year. ·Operating income rises by 28.5% to euros 161.7m. ·Consolidated sales amount to euros 2.3bn, up 21.7%, with notable increases in construction (+22.5%), concessions (+46.5%) and services (+103.6%). ·At the end of September gross capex amounted to euros 476m. ·The construction backlog rises 22.5%, the services backlog 13.6% and pre-sold real estate 23.8%. Ferrovial ended the first nine months of 2000 with euros 112.8 million (Ptas 18.77bn) in net income attributable to the controlling company, an increase of 55.7% on the euros 72.4 million of September 1999. This performance reflects improvements in margins and the positive behavior of sales and the backlog in the main business divisions. Operating income rose by 28.5% to euros 161.7 million (Ptas 26.896bn) and the sales margin improved to 7% as against the 6.7% of September last year. In this chapter, activities other than construction accounted for 61.5% of operating income. As of 30 September 2000, net sales amounted to euros 2,299.2 million (Ptas 382.554bn), 21.7% more than last year, with large increases in construction, where sales revenues rose by 22.5%, the infrastructure concession division by 46.5%, and services by 103.6%. Ferrovial continued to make hefty investments, which amounted to euros 476 million (Ptas 79.2bn) at the end of September 2000. These mainly went to the acquisition of 58.5% of the Polish construction firm Budimex, the Scut motorway concession in the Algarve, Portugal and the purchase of Grupisa, one of the leading integrated road conversation companies in Spain. In construction, sales and the backlog increase by over 20% Sales in the construction business rose by 22.5% to euros 1,937.65 million (Ptas 322.373bn). As of 30 September 2000, the construction backlog amounted to euros 4,659 million (Ptas 775.192bn), a 21% increase on September 1999, which serves to guarantee the continual growth of the business. In the early months of this year, Ferrovial completed the acquisition of a 58.5% holding in the Polish construction firm Budimex. This strategic bid for the Polish construction market which will be boosted by EU funds when Poland foreseeably joins the EU- will enable Ferrovial to expand in Central Europe and to develop other businesses, such as concessions, real estate development, services and telecommunications. In the third quarter of the year sales revenues in the real estate division were in excess of euros 121.4 million (Ptas 20.2bn), although the figure reflects a seasonal effect in housing delivery, which will be reactivated in the last quarter of the year. Pre-sold real estate rose to euros 420.2 million (Ptas 70bn), an increase of 23.8%, practically equaling the figure obtained in 1999 as a whole and guaranteeing stable sustained growth of he business in the medium term. Concessions, services and telecommunications At euros 189.1 million (Ptas 31.463bn), sales in the concessions business, which is conducted by Cintra, registered an increase of 46.5% at the end of September 2000. The ETR 407 motorway in Canada and the Costa del Sol motorway, between Malaga and Estepona, made an important contribution to this. Notable in this third quarter is the end of the financing of the Scut motorway in Portugals Algarve, which Ferrovial will run for 30 years, and of the Collipulli-Temuco stretch of Ruta 5 of the Panamericana road in Chile, which was effected entirely in local currency, for a value in euros of 228 million over 20 years. Sales in the services business doubled to reach euros 133.8 million (Ptas 22.262bn), on the back of the new contracts from 1999 and the acquisition of Grupisa, one of the leading companies engaging in integrated road conservation and the manufacture and installation of horizontal and vertical signposting in Spain. The services backlog amounted to euros 687.8 million (Ptas 114.44bn), an increase of 13.5% with respect to September 1999. In telecommunications, the most important event was the approval of a rights issue at Ono, after the decision to postpone its flotation, in which Ferrovial is to invest euros 7.5 million and a further 18 million next year. Ferrovial continues to back the telecommunications market, where it is present through its holdings in Ono (Cable), Uni2 (fixed telephony) and Wanadoo (Internet), and this is illustrated by its plans to bid for the UMTS mobile telephony licenses in Poland.