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.