Costs increase as Cintra adds more highway assets in North America

Cintra 1st-Half Profit Drops 65% on Higher Financial Expenses


July 26, 2006

Bloomberg.com
Copyright 2006

Cintra Concesiones de Infraestructuras de Transporte SA, which operates toll roads in countries including the U.S. and Canada, said first-half profit dropped 65 percent as costs increased after the company added more highway assets.

Net income fell to 17.8 million euros ($22.4 million) from 51.3 million euros a year earlier, Madrid-based Cintra said today in a regulatory filing. Revenue rose 21 percent to 389 million euros as traffic increased.

Cintra, controlled by builder Grupo Ferrovial SA, is expanding in North America, where it runs the 407-ETR highway in Toronto and has projects in Chicago and Texas. About 68 percent of Cintra's revenue comes from outside Spain.

Financial expenses increased to 201.9 million euros from 121.8 million euros, Cintra said.

Analysts were expecting profit of 15.9 million euros, according to the median of six estimates in a Bloomberg survey.

To contact the reporter on this story:
Joao Lima in Madrid at jlima1@bloomberg.net;
Paul Tobin in Madrid at ptobin@bloomberg.net

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