Ferrovial net profit up 21.4% through September to 333.4 million euro

Press releases

With the consolidation of BAA for the first time EBITDA amounted to 1,644.8 million euro, an 85.6% increase Overseas revenues increased by 93.2% to 4,942.3 million euro and account for 54.1% of the total Group revenues totalled 9,133 million euro (+45.7%): growth in all areas: Construction (+18%), Infrastructure (+204%), Real Estate (+26.8%) and Services (+45%) EBIT increased by 80.8% to 1,140.8 million euro: - revenues in Infrastructure and Services increased by 104.2% to account for 70% of the total - EBIT obtained outside Spain rose by 146% to represent 64% of the total Growth is assured by the backlogs: Construction 7,769 million euro (+12.6%); and Services 7,612 million euro (+22.3%). Positive traffic performance (toll roads and airports) and an increase in the number of parking spaces (+16%); Property pre-sales increased by 8.8% Capital expenditure amounted to 4,308.3 million euro in the first nine months of 2006, almost five times the 9M05 figure Madrid, 30 October 2006. Ferrovial ended the first nine months of 2006 with notable growth in all business lines and significant progress with diversifying its infrastructure and services businesses and its international presence, with over half of revenues and EBIT being obtained outside Spain; for the first time, it consolidated UK airport operator (three months), which provided 1,039 million euro in revenues, 60% of the Infrastructure division total. Net income in the period amounted to 333.4 million euro, i.e. 21.4% more than in 9M05. EBITDA increased 85.6% to 1,644.8 million euro. EBIT increased by 80.8% to 1,140.8 million euro, boosted by growth in revenues and improved margins, mainly in Construction, Infrastructure and Services. EBIT in Infrastructure and Services grew by 104.2% year-on-year and now account for 70% of the total. Activities outside Spain contributed 64% of EBIT, after expanding by 146% in the first nine months. Revenues totalled 9,133.0 million euro, a 45.7% increase, based on strong growth in all lines of business: Construction expanded by 18% due to good performance in Spain and Poland (Budimex) and the addition of Texan construction company Webber; Services (+45%) was boosted by the addition of Swissport (handling) and Owen Williams (UK) as well as strong organic growth both in Spain and abroad. The Infrastructure division expanded by 204% due to first-time consolidation of airport company BAA, good traffic performance on the main toll roads, higher tolls on 407 ETR (Canada), and the opening of new toll roads (Indiana Toll Road in the USA, N4-N6 in Ireland, and Madrid-Levante in Spain). And the Real Estate division expanded revenues by 26.8%. International sales amounted to 4,942.3 million euro (a 93.2% increase) and represented 54.1% of the company's total sales. In addition to the UK (28%), the other countries making the greatest contribution to Ferrovial revenues were Poland (7%), the rest of Europe (Ireland, Switzerland, Italy and Portugal: 7%) and North America (USA and Canada: 9%). During the first nine months of 2006, gross capital expenditure reached a record 4,308.3 million euro, nearly five times the 9M05 figure (915.3 million euro). Capital expenditure in the period was mainly in Infrastructure, specifically to acquire UK airport company BAA (3,652.1 million euro). Other capex included the investment in the Indiana Toll Road concession (302.9 million euro) and the acquisition of services company Owen Williams (35 million euro). The Group also spent 192 million euro to buy land for real estate development. As a result of these investments, the company had a net debt position of 4,556.6 million euro at 30 September 2006, representing 85% leverage. Construction: improved margins and positive performance in Spain and other countries Rapid growth in Construction revenues, which rose 18.9% to 3,783.1 million euro, was due mainly to good performance in Spain and Poland (via subsidiary Budimex) and the addition of Webber (Texas). This division's EBIT reached 194.4 million euro in the first nine months of 2006, a 35.7% increase, and the EBIT margin increased to 5.1% (4.5% in 9M05). The construction backlog increased by 12.6% to 7,769 million euro. Polish subsidiary, Budimex, increased revenues by 15.4% to 549.3 million euro and expanded its backlog by a notable 46.2% to 781 million euro. Webber contributed 247.8 million euro in revenues and 524 million euro in backlog. Infrastructure: integration of BAA, the world's leading private airport operator Revenues in the Infrastructure division, which comprises toll roads, airports and car parks, increased by 204.5% to 1,726.5 million euro, boosted mainly by the integration of UK airport management company BAA (1,039 million euro, 60% of the division's total revenues), good performance by the existing toll roads and airports, the entry into service of new toll roads, and a notable increase in the number of parking spaces under management. EBIT in Infrastructure increased by 154.6% to 604.6 million euro, and the EBIT margin was 35%. Traffic performance on the main toll roads plus the entry into service of new assets boosted toll road revenues by 24.8% to 535 million euro, with EBIT rising 25.8% to 257.5 million euro. Canadian toll road 407 ETR increased revenues by 15.8% and EBIT by 20.8% due to increases of 2.6% in vehicle numbers and 2.3% in the average distance travelled, despite raising tolls on 1 February (+8.7% at peak hours). Highlights of this area in the period:
  • completion of a senior syndicated loan amounting to 6,970,000,000 pounds sterling and a junior syndicated loan amounting to 2,000,000,000 pounds sterling for the acquisition of BAA. The loans, representing Europe's largest ever infrastructure transaction and the largest subordinated tranche ever syndicated in Europe, were launched to sub-underwriters on 12 July 2006. Following a highly successful syndication, a significant oversubscription was achieved with support from 40 international institutional funds. 
  • Ferrovial strengthened its footprint in the US by commencing operation of the Indiana Toll Road (3,800 million US dollars) and signing a concession agreement for sections 5 and 6 of State Highway 130, as part of the Trans-Texas Corridor (1,300 million US dollars). In the United States, Cintra also has a 99-year concession to operate the Chicago Skyway and is strategic partner of the State of Texas in the development of the Trans-Texas Corridor.
  • selection as preferred tenderer by the Irish National Roads Authority (NRA) for the 50-kilometre M3 toll road between Clonee and north Kells, to the north-east of Dublin. The project is estimated to cost approximately 600 million euro and the concession will run for 45 years. 
  • entrance into the Greek concession market after being selected as provisional contractor to design, build, finance and operate the Ionian Roads project under a 30-year concession (1.16 billion euro)
  •  opening of the AP-36 Madrid-Levante toll road (177 km) under a 36-year concession. The road cost a total of 565 million euro and was opened in July 2006, five-and-a-half months ahead of schedule.
Car park revenues increased by 9.9% to 97.7 million euro and the number of managed parking spaces increased by 16% year-on-year to 251,268. EBIT amounted to 22.0 million euro, 7.8% more than in 2004. The improvement in the airport business was due mainly to consolidation of UK airport management company BAA, which was taken over by Ferrovial in June. BAA owns and manages 7 airports in the UK (Heathrow, Gatwick, Stansted, Glasgow, Edinburgh, Aberdeen and Southampton) which are used by close to 145 million passengers each year, as well as several airports in Australia, Italy, Hungry and the USA. Real estate: 26.8% revenue growth Ferrovial's Real Estate business attained 26.8% growth in revenues in 9M06, to 647.8 million euro, boosted by the divestment of the stake in the Omega business park (Madrid) and land sales (Valdebebas, Madrid). EBIT increased by 51.6% to 148.3 million euro and the EBIT margin was 22.9% (19.1% in September 2005), and property pre-sales increased by 8.2%. Services: 70% of revenues and 60% of EBIT obtained outside Spain The key figures in this area expanded rapidly; operations in other countries now account for 70% of revenues and 60% of EBIT. In 9M06, the Services area reported 3,117.5 million euro in revenues, a 45.8% increase, boosted by good performance in Spain and the UK and the consolidation of Swissport (handling) and Owen Williams (engineering). EBIT totalled 193.7 million euro, a 26.3% increase. The services backlog totalled 7,612 million euro, 22.3% more than in 9M05. The backlog does not include Tube Lines (maintenance of three London Underground lines for 30 years), which would increase the figure by approximately 14,532 million euro. Through Amey, the Services division has consolidated its presence in the UK, a market which represents 43.9% of the division's total revenues (1,369.7 million euro, +6.8%) and approximately half of its EBIT (94.7 million euro, +8.6%). Amey's backlog increased by 9.8% to 4,103 million euro. Handling company Swissport contributed 805.4 million euro in revenues in the period (25.8% of the Services division's total) and 21.0 million euro in EBIT. Services revenues in Spain increased by 10.1% to 942.4 million euro and EBIT by 17.7% to 79.9 million euro.  
KEY FIGURES (million euro) Sep-06 Sep-05 Var (%)
Net income 333.4 274.7 21.4
EBITDA 1,644.8  886.3 85.6
EBIT 1,140.8 631.1 80.8
Revenues 9,133.0 6,269.1 45.7
Net financial debt 4,556.6 129.0  
Leverage 85% 4%  
Gross capital expenditure 4,308.3 915.2  370.8
Construction backlog 7,769 6,901 12.6
Property pre-sales 531 488 8.8
Services backlog (*) 7,612 6,223 22.3
(*) Does not include the contract to maintain three lines of London Underground (Tube Lines) which would increase the figure by approximately 14,532 million euro.


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