The award of the Ocaña-La Roda toll road was among the highlights of a quarter marked by positive performance in all business areas and the significant contribution made by Cespa and Amey to the Services division.
Operating profit rose 33.7% to 171.1 million euros: recurring activities (infrastructure and services) accounted for 58% of the total.
Consolidated revenues increased by 50.2% to 1,710.9 million euros: 34% of the total came from other countries.
Positive backlog performance: The construction backlog exceeded 6.2 billion euros (+3.9%); the real estate backlog amounted to 1 billion euros (up 8.3%), and the services backlog increased almost six-fold to 5.165 billion euros.
Ferrovial posted a 30.7% increase in net profit in 1Q04, to 79.2 million euros. Significant progress was made in all business areas between January and March 2004, with positive performance in margins and the main operating variables (backlogs and toll road traffic), which will guarantee activity over the coming months.
Operating profit rose 33.7% to 171.1 million euros. Non-construction activities contributed 80% of the total and the most recurring businesses (infrastructure concessions and services) contributed 58%.
Net sales amounted to 1,710.9 million euros, up 50.2% on 1Q03, boosted by the contribution from services and positive performance by toll road traffic and revenues. By business area, construction grew 0.3%, infrastructures 28.1% and real estate 10%, while revenues from services increased almost seven-fold.
International sales grew 148% to 574 million euros due mainly to the inclusion of Ameys revenues, which accounted for 34% of the total, compared with 20% in 2003. The United Kingdom accounted for 22% of total international sales, and there were significant contributions from Canada, Portugal, Chile and Poland.
Gross investment amounted to 76.8 million euros, mainly in the services and infrastructure areas. At the end of March 2004, Ferrovial"s net debt stood at 772 million euros, with a leverage ratio of 42%.
Construction: Growth in the domestic market and improved profitability.
Construction sales increased 0.3% to 795 million euros despite the exchange rate effect in the international business. Sales grew 6% in the domestic market.
There was also a considerable increase in profitability, with the operating margin widening by 50 bp to 4.3% (vs. 3.8% in 1Q03). Operating profit rose 14.3% to 34.4 million euros.
The construction backlog increased by 3.9% to a record high of 6.237 billion euros, accounting for 24 months sales.
Infrastructure: sharp growth in traffic and revenues
Infrastructure revenues rose 28.1% to 137.6 million euros. Operating profit stood at 60 million euros, i.e. up 25.8%.
Toll road traffic and revenues grew fast in Spain (Ausol I, Ausol II and Autema). Elsewhere, revenues in Canada (+16% in local currency) were boosted by 4.4% traffic growth and an 8% toll increase.
In 1Q04, the Scut Algarve shadow toll road in Portugal started collecting tolls. The group also obtained a 36-year concession (extendable to 40 years) to build the Ocaña-La Roda toll road, for 525 million euros. The consortium comprises Ferrovial (50%), subsidiary Europistas (40%) and Polish construction subsidiary Budimex (10%), which has landed its first project in Spain
Airport revenues doubled due to positive performance by Bristol Airport and the inclusion of Belfast City Airport (acquired in May 2003). Sydney Airport increased revenues by 22% and traffic by 11%; it has been showing signs of a recovery in the last few months.
Car park revenues grew by 12.5% and managed parking spaces increased by 3% to 182,131.
Property development: sales were up 10%
Property development and realty brokerage improved substantially: sales increased by 10% to 199.3 million euros in the first quarter of 2004.
The backlog amounted to 1 billion euros (+8.3%), ensuring sales in the next fifteen months. Realty brokerage (Don Piso) sales increased by 11% to 25 million euros.
Services: revenues increased seven-fold and operating profit nine-fold
The inclusion of Cespa and Amey substantially boosted the key figures in the services area. In 1Q04, revenues increased nearly seven-fold to 617.4 million euros and operating profit multiplied nine-fold to 39.7 million euros.
The services margin improved substantially (6.4% vs. 4.6% in 1Q03) due to positive performance in all the activities.
The services backlog increased six-fold to 5.165 billion euros.