Revenue increased by 3.1% in like-for-like terms. There was notable growth in International Construction (17.7%), Amey (7.6%), Toll Roads (6.8%) and BAA (5.3%).
The main assets reflect the improvement in traffic which, together with the increase in tolls and fees, provided notable growth in EBITDA: 9.6% at Canadian toll road 407 ETR and 16.8% at London's Heathrow airport.
The Construction and Services backlog expanded by 3.8% to 23.412 billion euro.
The company refinanced all of its debt with the early repayment of 500 million euro and refinancing of 1.305 billion euro. The net cash position excluding infrastructure projects was 465 million euro.
Ferrovial, the global leader in infrastructure and services, obtained 224 million euro in net profit in the first quarter of 2011, contrasting with losses of 80 million euro in the same period of 2010. In the first few months of 2011, Ferrovial's main businesses improved, particularly airports, and it obtained capital gains from the sale of Swissport and its stake in the M-45 toll road.
EBITDA also reflected the improved trading performance, increasing by 8% like-for-like in the first three months of 2011 to 428 million euro. Revenue amounted to 2.281 billion euro, a 3.1% increase in like-for-like terms.
At the end of the first quarter, Ferrovial's Construction and Services backlog reached a record 23.412 billion euro, i.e. up 3.8% with respect to December 2010, ensuring future earnings visibility. The backlog reflects the company's internationalization, as 66% in Construction and 50% in Services are located in countries outside of Spain.
Consolidated figures for the first quarter of 2011 no longer include earnings from Swissport, 407 ETR (which is equity accounted), or the Chilean toll roads.
Strong traffic at the main assets
Traffic increased at the company's two main assets, by 2.5% at Heathrow airport and by 1.4% at Canadian toll road 407 ETR, which, together with higher tolls and fees, significantly improved EBITDA, by 16.8% and 9.6%, respectively. International Construction reported an increase of 18% in revenue and of 22% in EBITDA, supported by strong growth within Budimex (over 60% in all areas), Webber's concessions in the U.S. and the Crossrail project in the UK. In Services, Ameys 7.6% sales increase and a new waste collection and treatment contract in Murcia are noteworthy.
At the end of the quarter, the net cash position (not including infrastructure projects) amounted to 465 million euro, compared to 31 million euro at the end of 2010, boosted by the financial closure of the sale of Swissport and of the stake in M-45. Including infrastructure projects, consolidated net debt totaled 19.163 billion euro at the end of the quarter.
On April 12, the company refinanced all of its debt through the early repayment of 500 million euro and the refinancing of 1.305 billion euro. As such, Ferrovial extended the maturity of its debt to April 2015 (previously 2012) and improved its financial costs.
Despite changes in the company's consolidation scope and the equity accounting of the 407 ETR, the geographic and business diversification strategy maintained by the company is reflected in its income statement. The international business accounted for 64% of revenue and 80% of EBITDA. The Airports division contributed 60% of EBITDA, Services 16%, Toll Roads 14% and Construction 10%.
Services: Record backlog of 13.263 billion euro
The Services division attained 677 million euro in revenue in the first quarter of 2011, i.e. growth of 5.5% in like-for-like terms, while EBITDA amounted to 67 million euro, an increase of 5.5%. The backlog increased 7.1% to a record high: 13.263 billion euro, which includes new projects in the UK such as the Ministry of Justice contract valued at 354 million euro for a 7-year period. In Spain, the company obtained a 20-year waste collection and treatment contract in Murcia.
UK subsidiary Amey increased revenue by 7.6% in like-for-like terms to 302 million euro, attributable to the commencement of new contracts, including one in Birmingham. The backlog improved 1.4% to 6.683 billion euro.
The waste collection and treatment business in Spain performed positively due to growth in the number of tons processed and to the entry into operation of other contracts. The infrastructure maintenance business also added new projects. Revenue from this area amounted to 375 million euro (+3.8%) and EBITDA was 45 million euro. The backlog rose by 13.7% to 6.580 billion euro.
Toll roads: Traffic on the 407 ETR increased by 1.4%
In like-for-like terms, toll road revenue rose 6.8% with respect to last year, to 82 million euro. EBITDA increased by 5.5% in like-for-like terms to 58 million euro. The increase in tolls provided notable growth in revenue from the North American toll roads.
Canada's 407 ETR stood out in particular, with traffic increasing 1.4%, revenue by 8.6% and EBITDA by 9.6%; this asset is equity accounted.
Construction: 66% of the backlog comes from outside Spain
The Construction division obtained 889 million euro in revenue and 45 million euro in EBITDA in the first three months of 2011. The backlog remained stable at 10.149 billion euro. The international business contributed revenue of 463 million euro, i.e. 17.7% more like-for-like than in the same period of 2010, and EBITDA of 21 million euro, up 5.8%.
The international backlog amounted to 6.652 billion euro due to new projects in the US and the UK, accounting for 66% of the division total. Budimex and Webber reported significant growth in the main line items during the period.
Polish subsidiary Budimex expanded revenue by 67.2% to 181 million euro, while US subsidiary Webber increased revenue by 8% to 94 million euro in like-for-like terms.
In the domestic market, revenue declined by 12% due to a smaller volume of building and civil engineering projects. Backlog amounted to 3.497 billion euro at the end of the period.
Airports: traffic at Heathrow expanded by 2.5%
Revenue at Ferrovial Aeropuertos totaled 618 million euro, while EBITDA amounted to 256 million euro. In like-for-like terms, BAA reported growth of 5.2% in revenue (616 million euro) and 18.2% in EBITDA (259 million euro).
The airports division was affected in 2011 by the calendar effect (Easter fell in April) and, to a lesser extent, by the conflicts in the Middle East and the earthquake in Japan.
Heathrow's traffic totaled 15 million passengers, i.e. growth of 2.5% in the first three months of the year. Traffic performance, higher fees and growth in retail revenue due to improved sales at airport shops and parking lots were the main drivers of EBITDA growth which, together with cost containment, improved margins.
Passenger traffic improved notably at Scottish airports in Glasgow (4.6%) and Edinburgh (8.3%).
Further information from: http://media.ferrovial.es