Spain’s construction company ACS records €207 million profit in 1Q 2012

MADRID | Grupo ACS said Tuesday that the company recorded a net profit in the first quarter of 2012 of €207 million. The Spanish firm published its consolidated results today, showing that net sales of ACS in the first quarter of 2012 totaled €9,035 million, 144.8% more than last year. Growth in comparable terms, also considering the sales of Hochtief in the first quarter of 2011, accounted for a 4.9%.

ACS figures brought a sorry portrait of the economic state of Spain, though. International sales now account for 78.6% of total after multiplying by five to reach €7.1 billion. Growth was of 13.5%, while activity in Spain has decreased by 17.8%. The ACS data report highlighted that sales by geographic area are evenly distributed between Europe, America and Asia Pacific

“and demonstrate the diversification of the group.”

lfkThe total backlog in March 2012 amounted to €67.919 billion, a growth of 145.5%. It is significant the growth in international backlog, which already accounts for 82% of the total, led by the consolidation of Hochtief in the Group and the expansion of international activities of Dragados and Industrial Services. Net profit increased by 1.3% and includes the gain on the partial sale of Clece and other extraordinary items.

By business area, construction achieved sales of €6.791 million, 6.9% more than in the first quarter of 2011, including sales of Hochtief in both periods. International sales of the construction activity of Grupo ACS has grown substantially up to €6.036 billion, a figure already represents 88.9% of the total turnover of the activity.

The backlog at the end of March 2012 stood at €51.654 billion, equivalent to 22 months of production. The international backlog now accounts for 92.7% of the total from the construction area.

Sales at industrial services have been practically the same as in the previous period, decreasing by 1.0% to €1.83 billion, mainly because the Spanish domestic market activity has fallen by 17.4%. By contrast, international sales increased by 20.1% representing 53% of the total. This increase comes from countries like Mexico, Brazil, United States, Peru and northern Europe

Grupo ACS net debt as of March 31st, 2012, excluding debt of Hochtief AG, has been reduced by 1.9% compared with the first quarter of 2011, to €8.632 billion. Net debt of Hochtief AG at the end of the first quarter of 2012 stood at €1.864 billion.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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