October, 28th 2010
Grupo ACS reaches up to September 2010
Sales revenues amounted to 12,203 million Euros, 1.1% up on the like period the previous year.
International turnover climbed 31.4% and now accounts for 30.1% of the total.
Recurring net income came to 735 million Euros, 8.1% ahead of the year before.
The construction work and projects order book stands at 29,185 million Euros, being 41.4% international.
Turnover for Grupo ACS in the third quarter of 2010 reached 12,203 million Euros, up 1.1% on the previous year. International sales represented 30.1% of the total figure, which means an increase of 31.4%.
EBITDA (Gross Operating Income) grew by 8.1% to 1,191 million Euros, with a sales margin of 9.8% which rose by 70 basis points.
Net income came in at 1,132 million Euros, 36.5% below the figure for the first nine months of 2009 as that period included the extraordinary income from the sale of 35.3% of Unión Fenosa, 1 billion Euros, whilst in 2010 it includes the capital gains of 384 million Euros after the sale of a 15.55% of Abertis.
The quoted companies in which Grupo ACS has a stake, namely Abertis, Hochtief and Iberdrola, contributed 76 million Euros towards net income.
Ordinary net income from continuing operations, that is to say excluding contributions from discontinued activities, was 735 million Euros, 8.1% up on the previous year. Ordinary earnings per share rose by 12.4%.
The total order book for construction work by the end of the third quarter of 2010 stood at 29,185 million Euros, a 0.5% more than lastís years figure and includes a 28.6% growth for the international order book, now accounting for 41.4% of the total backlog of the Group.
Results by Business Area
The construction division made sales of 4,634 million Euros, down 4.8% on 2009. In spite of this, in the first nine months of the year international sales rose by 76.2%, representing 29.6% of total sales revenues.
EBITDA (Gross Operating Income) for the division came in at 346 million Euros, with the gross sales margin holding at 7.5%, while net income was 198 million Euros, leaving the net sales margin at 4.3%.
The construction work order book at the end of the first nine months of 2010 was 10,699 million Euros, which is the equivalent of 23 months of production. Notable here is the trend for the international order book, which now accounts for 46% of the total, having grown by 33.7% in the last twelve months up to 4,879 million Euros.
Out of those projects added in the international theatre, of note in Europe are various sections of the Portuguese high speed rail link and two motorways in Poland. In America several significant projects have been awarded to ACS, in the US and Canada, for example, the 72nd street subway station construction in NY, the ring road of Vancouver and another highway in Arizona, in Maricopa county, as well as the channel in Puerto Nuevo river in Puerto Rico. In Argentina ACS has been awarded with the container terminal in Buenos Aires port and in Chile a section of Route 5 has been put under contract, as have the liquid waste processing plant at Mapocho.
In Spain too, substantial projects have been placed under contract over the first nine months of the year, including the extension of the M-509 in Madrid, the section of the AVE high speed rail link between San Isidro and Orihuela in Alicante, the La Sagrera station and the underground parking in La Boqueria marketplace in Barcelona, the Malaga II penitentiary centre and construction projects in the ports of Gijón, A Coruña and Escombreras (Murcia).
Environmental Services made sales of 2,067 million Euros, meaning that these grew by 4.3%. This fine performance was due to both Environment, which was up 2.1%, and an improvement in Facility Management, where sales climbed by 8.0%.
EBITDA (Gross Operating Income) for Environmental Services came in at 266 million Euros representing a growth of 2.8% with the sales margin at 12.9%. Net income rose by 4.4% to 122 million Euros.
The current order book for this area stands at 11,565 million Euros, which is the equivalent of 51 months of activity, a 2.1% more than twelve months ago.
Among the most substantial contract awarded in the period, the most notable were the contract for the water supply system for the municipality of Totana in Murcia, the renewal of the management contract for the treatment plant in Alicante, the waste transfer plant of Ceuta, the urban waste collection contract for La Rochelle and La Challeville (France) or the contract extension for urban waste collection and treatment in the county of Hereford and Worcester (United Kingdom).
The industrial Services division saw its sales up by 4.5%, reaching 5,473 million Euros, this featuring a sound performance on the international side, which accounts for 36% of the divisionís turnover having risen by 12.9%.
EBITDA (Gross Operating Income) improved by 20.5% to 591 million Euros, while Net income rose 9.9% on the previous year to 282 million Euros.
The area ended the period under review with a project order book valued at 6,921 million Euros, which amounts to one year of production, meaning a 6.5% rise on the year before and where 50% is from international contracts.
Among the most significant contract awards received in the first half were those for the renovation of the Manzanillo thermal plant in Mexico, a wind park of 120 MW in Brazil, the construction of two topsides for a North Sea oil platform (Norway), the construction of two water treatment plants in Romania, the construction of two hydro-electric plants in Panama (Barro Blanco and Alto Maipo), and the installation of intelligent transportation systems on the I-595 highway in Florida (USA).
At the domestic market it is remarkable the award of the project for the BBG regasification plant enlargement in Bilbao and the contract for the maintenance of the feeding system in the Madrid-Valencia high speed train line.
Debt and net investment
Cash flow from operating activities over the year grew by 20.0% to 786 million Euros, buoyed by fine operating results and efficient management of working capital.
Grupo ACS continues to implement its schedule of investment, which focuses in the main on infrastructure and energy concession projects, which totalled 1,940 million Euros in the first nine months of 2010. Disposals in the period accounted for 2,374 million Euros, mainly from the sale of 15.55% of Abertis.
Including its cash flow generation, investments and disposals, combined net debt for Grupo ACS as of 30th September 2010 decreased by 1,346 million Euros, or 12.9%, in the third quarter 2010 versus the first half, to 9,077 million Euros.
Non-recourse debt stood at 9,970 million Euros whilst the rest of the Group accounted net cash position of 893 million Euros.
Of the total for non-recourse debt, 4,608 million Euros derived from financing concession projects. The remainder of 5,362 million Euros was debt attaching to vehicle companies employed in buying up 29.98% of the shares in Hochtief and 12.47% in Iberdrola to 30 September 2010.
The increase in the project finance requirement was prompted by the major programme of investment in concession-related assets as mentioned above. In specific terms, investments in Concessions in the first nine months of 2010 totalled 510 million Euros, these including the sum of over 141 million Euros invested in the I-595 tollway in the USA and that of 183 million Euros in the Eje Diagonal highway in Barcelona, while in Industrial Services 1,027 million Euros was invested mainly in renewable energy projects, where the most notable portion went into solar thermal plants in Spain, transmission lines in Brazil and wind farms in Mexico.
Lastly, maintenance investments were made on the Construction and Environment sides of 74 and 84 million Euros respectively.