Monday, February 26, 2007

Ferrovial's purchase of Webber pays off

Ferrovial reports 1,426 million-euro net profit for 2006


Construction and Maintenance News (Belarus)
Copyright 2007

Spanish building group Ferrovial reported today its revenue grew by 48.5% to 12,354.6 million euro for the year. Construction expanded by 17% due to progress with projects in Spain and abroad, including Budimex (+17%) and Webber, in Texas, which contributed 322 million euro in revenues. The Services division increased revenues by 34%, mainly due to integrating Swissport and Owen Williams for a full year, and Infrastructure revenues surged by 285% as a result of consolidating BAA for half the year, plus new concessions and good traffic performance at toll roads and airports.

As a result, net profit amounted to 1,426 million euro in 2006 (242.8% more than in 2005). Excluding changes in consolidation scope and discontinued operations, pro-forma net profit increased by 35.5%. EBITDA increased 105.6% to 2,324.3 million euro, boosted by all business areas, mainly the more recurring activities (services and infrastructure), which grew by 132.7% and now account for 82% of the total.

In 2006, Ferrovial invested 4,445.8 million euro, the largest figure in its history, to buy UK airport company BAA (3,672.1 million euro), the Indiana Toll Road concession (302.9 million euro), another 10% of the R-4 toll road (54.9 million euro), as well as capital increases at the Madrid-Levante toll road (22 million euro) and the N4-N6 toll road (28.1 million euro), and the acquisition of engineering firm Owen Williams in the Services division (35.2 million euro).

Notable divestments include the sale of the real estate business to Habitat (for 2,200 million euro EV, including 600 million euro in debt), Europistas (334 million euro) and Bristol airport (150 million euro).

Despite those sizeable investments, Ferrovial ended the year with a net debt position (excluding concession companies' debt) of 3,064.1 million euro (46% leverage). In 2006, Ferrovial's operating cash flow net of taxes amounted to 806.9 million euro.

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