Press releases

Complete news


Net Profit in the first quarter of 2014 accounts

• Sales stand at 8,800 Euro million, 82.1% of them from abroad

• Net debt of the Group has decreased by 17.9% since March 2013 down to 4,579 Euro million by the end of the period.

Consolidated Results
Sales in the first quarter of 2014 accounted for 8,800 Euro million, representing a decrease of a 3.4% due to the impact of the exchange rates and the changes of perimeter after the sales of services and telecomm businesses in HOCHTIEF. Not taking these effects into consideration, sales grew by 9% in the period thanks to the significant international activity of the Group, accounting for 82.1% of the total.
Sales by geographical areas demonstrate the diversification of the income sources of the Group, where Australia weights 30% of sales, North America a 28%, Europe a 27%, Asia a 9%, South America a 5% and Africa 1%. Spain represents 18% of the total sales of ACS.
Total backlog by the end of March 2014 accounted for 63,874 Euro million, showing a comparable year to year decrease of a 1.8%, after eliminating the effects from the exchange rate variations, caused by the depreciation of the Australian Dollar, the predominant currency in the backlog, and the perimeter changes after the disposals in Hochtief.
Grupo ACS EBITDA accounted a 14.5% decrease down to 648 Euro million, affected also by the exchange rate, the sale of assets during the second half of 2013, mainly the Services and Telecom businesses of HOCHTIEF and Leighton, and the creation of a mining Fleet Company in Australia (FleetCo) that implies an increase of the operative leasing and a reduction of depreciation. In comparable terms, eliminating all these effects EBITDA of the Group would have grown by 0.8%. The margin on sales stands at 7.4%
EBIT grew up to 421 Euro million, which means, in comparable terms, excluding the effect of the exchange rates and perimeter changes, a growth of a 11.1%, slightly ahead of the comparable growth of the turnover. Margin on sales stood at 4.8% .
Net Results of the operating activities show the resilience of the Group as, in comparable terms, Construction decreases slightly (-1.3%), whilst Industrial Services and Environment grow solidly by 6.0% and 7.2% respectively.
Net profit accounts for 202 Euro Million, a 20.6% ahead of the figure accounted in March 2013.

Financial Situation
Net debt of Grupo ACS accounts for 4,579 Euro million, and decreases a 17.9% compared to March 2013, after the strong disposals of the Group in the last year.
Out of the total net debt, 707 Euro million correspond to project finance, without recourse for ACS, whilst 3,550 Euro million are related to the rest of the business activities of the Group.

Results per Area of Activity
Sales in Construction accounted for 6,539 Euro million, showing a decrease of 4.3% due to the effect of the exchange rates and the perimeter changes after the disposals already mentioned. In comparable terms, the variation would have been a positive growth of 10.7%.
International sales in Construction account for 6,119 Euro million, a figure now representing 93.6% of the total sales of the area.
EBITDA accounted for 343 Euro million, with a margin on sales of a 5.2%. Net profit accounted for 50 Euro million.
Backlog by the end of March 2014 accounted for 48,156 Euro million. International backlog represents 93.1% of the total in Construction.
Amongst the most important awards of the period, these are the most significant:
- Works for the construction of Line 2 and stretch from Av. Faucett-Av Gambetta of the Lima subway network (Peru)
- Design and construction of a 56km highway plus five interchanges of New Orbital Highway in Doha (Qatar)
- Construction of tunnel buildings, systems and fitting out works for Central Wanchai Bypass in Hong Kong
- Three-year mining contract with Western Desert Resources for Rope Bar Iron Ore (Australia)
- Building of the new headquarter office of Banco Popular (Madrid)
- Construction of a new watergate in Mosela river in the city of Trier (Germany)
- Project for the construction of a new museum in Madrid (Spain)
- Construction and extension of a highway lane in the A4 in Austria
- Works in the Almudévar damm for the improvement in the system of irrigation of Alto Aragón (Huesca, Spain)
- Works for the improvement of Levante highway to Mercapalma (Palma de Mallorca, Spain)
- Contract for the planning, construction and operation of the Wolfgang-Borchert-Gymnasium (secondary school), in the municipality of Halstenbek (Germany)
- Construction of a new bridge in Langenfeld (Germany)
- Project for the rebuilding and enlargement of the Orense University Hospital Complex (Spain)
- Works for the construction of the Ruskin Damm (Canada)
- Infrastructures works for the enlargement of Los Angeles subway network (USA)
- Project for the enlargement of the line D of Buenos Aires subway (Argentina)

Industrial Services
Sales in Industrial Services accounted for 1,850 Euro million, a 1% higher than in the first quarter of 2013. Not taking into consideration the exchange rates, sales would have grown by 5.2%. International sales accounted for 966 Euro million, a 52.2% of the total.
EBITDA grew by 2.8%, up to 250 Euro million. Net profit also grew by 1.0% up to 125 Euro million.
Backlog of this area accounted for 7,508 Euro million by the end of the period, equivalent to 13 months of production, being 69.1% from international contracts. The most important awards of the period are:
- Contract for the public facilities and energy management of urban facilities in the city of Madrid (Spain)
- Contract for the construction of new facilities within the Ma’aden Phosphate Company (MPC) complex for storage and interconnection to the Ras Al-Khair Port (Saudi Arabia)
- Design, supply and construction of the Renace III hydroelectric plant in Alta Verapaz (Guatemala)
- Project for the construction of 520 kilometers of high voltage transmission line in Brazil
- Thermal power station construction with an installed capacity of 182 MW in the Cerro Verde mine (Peru)
- Mechanical EPC contract for Suez thermal plant with an installed capacity of 650 MW (Egypt)
- Contract for public lighting services in Mostoles municipality (Madrid, Spain)
- Construction of the El Salvador photovoltaic plant with an installed capacity of 68 MW (Chile).

Environment accounted for sales of 419 Euro million, showing an decrease in comparable terms of a 1.6%.
EBITDA in Environment accounted for 66 Euro million with a margin on sales of 15.8%. Net Profit accounted for 21 Euro million.
Backlog stood for 8,210 Euro million, equivalent to 56 months of activity, with a 46.8% coming from abroad. Amongst the most important awards of the period are:
- Street cleaning contract extension for the sector 7 in Buenos Aires (Argentina)
- Contract for urban waste collection in the municipality of San Fernando (Argentina)
- Urban waste collection and street cleaning contract extension for Santa Cruz de Tenerife (Spain)
- Street Cleaning and waste collection in the municipality of Coronel (Chile)
- Street cleaning contract extension for the city of Paris (France)

Madrid, May 8th, 2014