ACS H1 results overall in line; disparities in regional sales performance


ACS’ first half 2016 results were broadly in line with consensus estimates, although net income came in slightly lower at €388 million euros vs consensus of €411 million (-5%).

Citi analysts flagged that this could be due to weakness in Spain at ACS’ industrial services division, which typically has a higher net profit margin than the rest of the group (c.5%).

Citi also highlighted the disparity in the sales performance in the key regions where ACS operates. Both Spain and Asia Pacific saw a drop in sales, down 15.7% and 28.9% respectively, continuing the trend registered in the first quarter. But North America, which now accounts for just over 44% of group sales, remained strong.

ACS’ core construction business remains challenged in Spain, South America and Asia Pacific, Citi noted.

About the Author

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.