EBIT grew by 36.5% to 237.6 million euro:
EBITDA totalled 328.8 million euro, a 41.3% increase
Revenues increased sharply, by 38.3%, to 2,501.1 million euro:
- the more recurring businessesInfrastructure and Servicesincreased EBIT by 29% to represent 59% of the total
- other countries increased EBIT by 57.3% and now account for 49% of the total
Growth is assured by the backlogs: the backlog increased by 11.3% in Construction (7,571 million euro), 10.1% in Real Estate (1,106 million euro) and 33.4% in Services (7,183 million euro). Positive performance by traffic (toll roads and airports) and parking spaces (+13.3%)
- foreign revenues increased by 78.6% to 1,253 million euro and account for 50% of the total
- all areas expanded rapidly: Construction (+26.7%), Infrastructure (+22.4%), Real Estate (+39.1%) and Services (+58.6%)
The company's investment capacity is intact, with leverage at 18%
Expansion in all business areas, and progress in diversification into recurring activities and a greater international presence
Madrid, 3 May 2006. Ferrovial ended the first quarter of 2006 with notable growth in all business lines, an increase in diversification towards recurring activities (Services and Infrastructure), a greater international presence and the consolidation of the acquisitions made in 4Q05 (Swissport, Webber and Owen Williams). As a result, net profit increased by 43.6% to 111.6 million euro.
EBIT increased by 36.5% to 237.6 million euro, boosted by growth in revenues and improved margins in Construction and Infrastructure. EBIT in the more recurring activities (Infrastructure and Services) grew by 29% year-on-year and now account for 59% of the total. Activities outside Spain contributed 49% of EBIT, after expanding by 57.3% in 1Q06.
EBITDA increased by 41.3% to 328.8 million euro.
Revenues totalled 2,501.1 million euro, a 38.3% increase, based on strong growth in all lines of business: Construction expanded by 26.7% on good performance in Spain and Poland (Budimex) and the addition of Texas construction company Webber; Services (+58.6%) due to strong organic growth both in Spain and abroad and the addition of Swissport and Owen Williams; Infrastructure (22.4%) reflected good performance in its three segments (toll roads, car parks and airports) and the entry into service of new toll roads; while the Real Estate division registered 39.1% growth.
International revenues amounted to 1,253 million euro, a 78.6% increase, and now represent half of the company's total revenues. The foreign countries making the greatest contribution to group revenues were the UK (19%), Poland (6%), rest of Europe (Ireland, Switzerland, Italy and Portugal: 15%) and North America (Canada and the US: 7%).
In the first quarter of 2006, Ferrovial invested 111 million euro, mainly in Services (acquisition of Owen Williams, in the UK) and Infrastructure. Also, the Real Estate division invested 120.2 million euro in gross land purchases. Ferrovial had 549.7 million euro of net debt at the end of the quarter (18% leverage), so its investment capacity is intact.
Construction: markets are booming, margins widened, and the backlog increased
Strong growth in Construction revenues, which rose 26.7% to 1,100.8 million euro, was due to strong performance in Spain and Poland (via subsidiary Budimex) and the addition of Webber (Texas).
Construction EBIT reached 53 million euro, a 41% increase, and the EBIT margin widened to 4.8%.
At the end of the quarter, the construction backlog had increased by 11.3% to 7,571 million euro.
Polish subsidiary, Budimex, increased revenues by 22.3% to 124.3 million euro and expanded its backlog by 31.6% to 780 million euro. Webber contributed 80.1 million euro in revenues in 1Q06, and its backlog totalled 473 million euro.
Infrastructure: growth in traffic and margins, and new assets in service
Revenues in the Infrastructure division, which comprises toll roads, airports and car parks, increased by 22.4% to 197.6 million euro, driven principally by good traffic performance at the main toll roads and airports, and a sharp increase in revenues on 407 ETR (Canada); the entry into operation of the Chicago Skyway (for the full quarter) and the N4/N6 in Ireland; and a significant increase in the number of parking spaces.
EBIT in Infrastructure increased by 25% to 75.9 million euro, and the EBIT margin improved to 38.4%.
Traffic performance on the main toll roads plus the entry into service of new assets boosted toll road revenues by 25.2% to 152.9 million euro, with EBITDA rising 25.1% to 109.3 million euro. 407 ETR made a significant contribution: revenues increased by 28% and EBITDA by 35.4% while vehicle numbers rose 4.8% and average trip length by 4.5%, despite an increase in tolls of 8.7%-9.9% in February 2006.
Highlights of the toll road division in the period:
- Selection, January, as preferred bidder for a 75-year concession for the 253-kilometre Indiana Toll Road. The concession will cost 3.85 billion USD and is the second toll road in operation to be privatised in the United States; Cintra will take over management in the coming months. The concession contract with the IFA (Indiana Finance Authority) was signed on 12 April;
- On 3 April, an amicable settlement was reached between the 407 ETR road operator and the Ontario Government regarding all legal disputes between the parties. The settlement is due to both parties' decision to create a stable collaboration framework that reinforces long-term relations and provides advantages to the highway users.
- On 10 April, Cintra acquired an additional 10% of the R-4 toll road from Unicaja and now owns 55%.
Car park revenues increased significantly (15.5%) to 30.6 million euro and the number of managed parking spaces reached 240,631 in the period (a 13.3% increase).
The improvement in the airport business (revenues +11.7% and EBIT +53.1%) was due mainly to strong growth in traffic, including a notable 16% increase at Bristol airport.
In April, the consortium comprising Ferrovial Infraestructuras (a Ferrovial subsidiary), Caisse de dépôt et placement du Québec and an investment company managed by GIC Special Investments Pte Ltd made a binding offer for all of the shares of UK company BAA plc. BAA is the world's largest airport operator: it operates seven airports in the UK and has airport holdings in Australia, the US and Hungary. The offer, which is unilateral (i.e. not tied to a recommendation by the Board of Directors of BAA), is directed at all shareholders of BAA and consists of an offer of 810 pence in cash per share of BAA, which implies valuing BAA at 8.700 billion pounds sterling (12.405 billion euro). The deadline for acceptance of the offers is 15.00 London time on 18 May 2006.
Ferrovial and Australian group Macquarie also agreed to exchange conditional put and call options on Ferrovial Aeropuertos's stake in Bristol (50%) and Sydney (20.9%) airports. Exercise of the options is conditional upon the consortium acquiring a controlling stake in the capital of BAA. At the date of the agreement, those prices were estimated at approximately 1.009 billion Australian dollars (600 million euro) for Sydney and 106 million pounds sterling (154 million euro) for Bristol.
The Real Estate backlog (over 1.1 billion euro) guarantees 15 months' sales
Ferrovial's Real Estate business reported 39.1% growth in revenues in 1Q06, to 225.9 million euro, boosted by property development (+28%) and the tertiary business (sale of the stake in the Omega business park in Madrid). EBIT increased by 40% to 42 million euro, with the EBIT margin rising to 18.6%.
Pre-sales increased by 19.2% and the real estate backlog rose 10.1% to 1,106 million euro, guaranteeing sales for the next 15 months.
Services: second-largest source of revenues and earnings
The Services area has established itself as the group's second-largest generator of revenues (42% of the total) and EBIT (26%).
In 1Q06, it was the fastest-growing division as revenues rose 58.6% to 1,027.1 million euro, lifted by strong business performance in Spain and the UK and the consolidation of handling company Swissport and of UK engineering company Owen Williams (acquired by Amey at the end of 2005). EBIT totalled 62.9 million euro, a 33.8% increase.
The Services backlog expanded by 33.4% to 7,183 million euro. The backlog does not include the Tube Lines backlog (maintenance of three London Underground lines for 30 years), which would increase the figure by approximately 14,860 million euro.
Through Amey, the Services division has firmly established its presence in the UK, a market which represents more than 45% of the division's total revenues (470.3 million euro, up 26.3%) and over 50% of its EBIT (31.8 million euro, up 37.1%). Amey's backlog increased by 41.4% to 4,188 million euro. Swissport, the world's leading independent handling company, contributed 255.6 million euro in revenues in the period (25% of the Services division's total) and 4.4 million euro in EBIT.
Services revenues in Spain increased by 9.4% to 301.2 million euro, and EBIT rose by 12.2% to 26.7 million euro. The Services backlog in Spain increased by 23.6% to 2,995 million euro.
(*) Does not include the contract to maintain three lines of London Underground (Tube Lines)
|Net financial debt
|Gross capital expenditure
|Real Estate backlog
|Services backlog (*)