Grupo Ferrovials 1S operating reults post 75% growth to 11.9 billion

Grupo Ferrovials 1S operating results post 75% growth to 11.9 billion

Grupo Ferrovial reached consolidated sales of Pta 212 billion (EUR 1,273.839 mn) by end-June, increasing by 24.4% versus June 1998, backed by strong sales growth in all business lines: construction sales, 20%; real estate activities, 7%; infrastructure concessions, 160%; and services, 38%.

Grupo Ferrovials positive performance is reflected in a 74.8% increase in operating income, to Pta 11.905 billion (EUR 71.553 mn). Ordinary results increased by 97% to Pta 12.033 billion (EUR 72.321 mn).

Celerity in the Groups construction activities integration process in Ferrovial-Agromán has led to one-off extraordinary expenses in excess of Pta 3.4 billion as of June 99, which means recording more than 75% of the merger costs expected for the whole year. This fact explains why the controlling companys net attributable income amounts to Pta 5.66 billion (EUR34.034 mn), increasing by 7% versus Pta 5.289 billion as of June 1998. Net income excluding merger extraordinary expenses would have increased by 72% versus June 1998.

Strong sales growth

All business activities show strong sales growth: construction, with Pta 180.618 billion, increases by 20% versus June 1998, with strong momentum both in domestic and international activities. As of June 30 1999, the construction order backlog amounts to Pta 655 billion, increasing by 9.6% versus June 98.

In Real Estate, sales reached Pta 14 billion, growing by 7.14%. Pre-sold inventories amount to Pta 44 billion, increasing by 80% versus June 98 and close to 1997s figure of 51 billion.

Infrastructure concession activities, developed through Cintra, post 160% growth as of June 30, to Pta 10.844 billion (EUR 65.174 mn), with the significant contribution of Toll road H407 in Toronto and of car park activities.

Services activities experienced strong sales growth, to Pta 6.848 billion (EUR 41.157 mn), 38% more than in the same period of 1998, due to revenue increase in maintenance and to the volume of some awards, among them, the Consorcio Almazora-Levante (Almería) contract and the extension of the A Coruña concession. The services order backlog exceeds Pta 100 billion, 46.2% up on June 1998.

Major awards

Among the contracts awarded to Ferrovial Agromán in recent months, the following should be highlighted: Toll Road M-45, between the ODonnell axis and N-IV, with an investment of Pta 22 billion; Fraga bypass (Aragón), with more than Pta 11 billion; capacity increase of the Waste Water Purifying Plants Sur and Butarque (Madrid); Campo de las Naciones Business Center (Madrid); and Arquinequín-Pto. Rico- Las Palmas toll road.

Abroad, construction contracts awards were won in Canada extension of H407 toll road stretches in Toronto-; Italy Milano-Naples toll road; Colombia Torca hydraulic system and Portugal. In services activities we should highlight the concession contracts of Consorcio Almanzora-Levante (Almería), for Pta 13 billion; Mercamadrid, for Pta 1.3 billion; and the extension of the concession of the waste disposal and street cleaning contracts of A Coruña.