Including the extraordinary effect of the sale of 40% of Cintra in the first quarter of 2002, net profit would have fallen 46%.
Operating profit grew 19% to 423.3 million euros and the operating margin was 10.8% vs. 9.9% in September 2002.
Consolidated revenues reached 3,904.5 million euros, up 9.2%: Construction (-2.8%), Infrastructure (+16.8%), Real Estate (+13.9%) and Services (+113.6%).
The Construction backlog was 6,145 million euros; the Real Estate backlog was 939 million euros and the Services backlog was 3.975 million euros.
Gross investment in the period amounted to 446.7 million euros.
The main new developments include the acquisition of Cespa and of UK company Amey, consolidated for two months
Cepsa + Amey (full consolidation), means that the services division will present revenues of over 2,200 mn euros and contribute 30% of total Group revenues in 2004
Ferrovial´s net profit
rose 13.2% in the first nine months of 2003, to 214.9 million euros. Including the effect of the extraordinary revenues generated by the sale of 40% of Cintra (Ferrovial´s toll road concessions subsidiary) in the first quarter of 2002, net profit would have fallen 46%. Between January and September 2003, most business areas continued to expand, with good performance in margins and the main operating aggregates (backlog and toll road traffic), assuring business in the coming months.
rose by 19% to 423.3 million euros and the operating margin improved to 10.8%, up from 9.9% through September 2002. Non-construction activities represented 74% of total operating profit.
amounted to 3,904.5 million euros through September 2003, 9.2% higher than the same period of 2002 (excluding adverse exchange rate movements, growth would have been 11.3%). Through September 2003, foreign revenues totalled 1,082 million euros and represented 28% of total revenues, with notable contributions from the United Kingdom (7%), Poland (8%), Portugal, Canada and Chile.
amounted to 446.7 million euros, mainly in Services (acquisition of Amey and the first payment for the acquisition of Cespa) and Infrastructure (Belfast City Airport concession). Additionally, a further 321 million euros investment was made to acquire land for property development.
At the end of September 2003, net debt amounted to 301.5 million euros, contrasting with 228 million euros in net cash at the end of September 2002, and representing 18% leverage.
Construction and Real Estate
division registered a 2.8% fall in revenues through September to 2,617.7 million euros, due to the negative effect of the euro´s appreciation (excluding this effect, revenues would have remained practically flat) and the baseline effect of the strong pace of production in 2002 (domestic production grew 22% through September 2002, compared to the current 3%).
At 30 September, the construction backlog amounted to 6,145 million euros, up 4.3% (excluding the exchange rate effect, it would have grown 5.3%), and covering 21 months´production. There was a considerable increase in profitability, with operating margins of 4.3% backed mainly by an improved margin in the execution of the backlog and increased profitability at Polish subsidiary, Budimex.
There was also significant growth in the Real Estate
division, with a 13.9% increase in revenues to 515.5 million euros. Realty brokerage (Don Piso) revenues grew 36%. The real estate backlog amounted to 939 million euros (+8.8%), guaranteeing sales for the next 18 months, and year-to-date pre-sales grew 6.1% to 485 million euros.
Infrastructure: growth in revenues and traffic
Despite the negative effect of the exchange rate on concessions in other countries, the Infrastructure division posted 16.8% growth in revenues, to 389.2 million euros, due to strong growth in revenues from Spanish toll roads (Ausol 1 +29% and Autema +9%) and the full consolidation of the M-45 and Ausol II toll roads. The 407 Express Toll Route (ETR) in Canadathe world´s first all-electronic toll road with fully-deregulated tollsapplied its first unrestricted toll increase in February, and January-September revenues rose 12% in local currency.
Construction commenced on the N4/N6 Kinnegad-Kilcock Motorway in Ireland (30-year concession).
In the airports division, traffic and revenues also performed positively, reflecting improvements in international air transport: Sydney Airport revenues grew 10% in this period (local currency) and traffic increased 2% (+6% in September alone); Bristol Airport revenues grew 10% (local currency) and traffic increased 14%; and recently-acquired Belfast City Airport revenues grew 10% (local currency) while traffic increased 7%.
In the parking division, revenues increased significantly (+16.8%) due to revenues obtained by the parking meter service in Madrid, which commenced in November 2002.
Major increase in Services: incorporation of two months of UK company Amey
division revenues grew 113.6% (to 521.8 million euros) due to the integration of Amey in July and August (excluding this effect, organic growth would have been 24.8%). The services backlog amounted to 3,975 million euros (+381.9% on September 2002) due to the inclusion in the third quarter of the UK subsidiary´s portfolio.
Together with the acquisition of Amey, the other highlight was the agreement reached to purchase services company Cespa. Once it is approved by the competition authorities, Cespa will be consolidated into Ferrovial´s accounts as of 1 October. Cepsa contributes complementarity and size, and the full consolidation of its activity, together with that of Amey, means that the services division will present revenues of over 2,200 million euros and contribute 30% of total Group revenues in 2004 (vs. 7% in 2002).