Press release Colas FY 2012 earnings

PR Newswire/Les Echos/ 
PRESS RELEASE 
                                              Boulogne, February 27, 2013 
* Revenue is up 5% 
* Net profit attributable to Group: EUR302 M (EUR336 M in 2011) 
* Dividend proposed: EUR7.26 per share 
* High level of work-on-hand: EUR6. 7 Bn (+ 4 %) 
The Board of Directors of Colas, chaired by Mr. Hervé Le Bouc, met on February
22, 2013 to finalize the 2012 financial statements that are to be presented to
the Annual General Shareholders' Meeting on April 16, 2013. 
Consolidated key figures 
in millions of euros                             2012        2011     Change 
                                                                 2012/2011 
Consolidated revenue                           13,036      12,412        + 5 % 
of which France                             7,363       7,250        + 2 % 
of which International                       5,673       5,162       + 10 % 
Operating profit                                  406         466       - 13 %
Consolidated net profit 
attributable to the Group                         302         336       - 10 % 
Net cash flow                                     723         728     - 5 MEUR
Free cash flow (1)                                407         327    + 80 MEUR 
Net cash / (Net debt)                            (170)         28   - 198 MEUR 
(1) Free cash flow = cash flow (determined after cost of net debt and net 
income tax expense, but before changes in working capital) minus net capital
expenditure for the period, excluding the acquisition of assets attributable 
to external growth (29 million euros in 2012, 13 million euros in 2011). Free 
cash flow including the acquisition of assets attributable to external growth 
amounts to 314 million euros in 2011 and 378 million euros in 2012. 
Despite a sluggish economic background, revenue is up 5% at 13.0 billion euros 
Consolidated revenue for 2012 recorded a 5% increase at 13.0 billion euros 
(+ 3 % with unchanged scope of business and identical exchange rates). Growth 
is mainly attributable to international operations (+10% at 5.7 billion euros)
whereas revenue in France increased slightly (+2% at 7.4 billion euros). 
Roads: 
In mainland France, revenue totaled 5.2 billion euros, virtually unchanged 
from 2011 (+1%).
After a first half year marked by particularly unfavorable weather, the Group
was able to offset the resulting construction delays during the second half
year. However, in light of the fact that production costs increased some 4%
(bitumen, energy, raw materials, etc.), business activity actually decreased 
in volume by roughly 3%.
The road market remains characterized by deep-rooted geographic disparities as
far as volume is concerned. 
In Europe, revenue remains unchanged from 2011 at 1.5 billion euros (+1% with
unchanged scope of business and identical exchange rates).
Northern Europe posted an increase in revenue, notably in the United Kingdom 
and Denmark. In central Europe, revenue is down in the wake of the sale of a
Romanian subsidiary in 2012, but business with identical scope and exchange
rates was stabilized. 
In North America, revenue was up 10% at 2.6 billion euros (+ 2 % with 
unchanged scope of business and identical exchange rates).
In the United States, revenue is down slightly with unchanged scope of 
business and identical exchange rates, in a market that was less favorable 
than expected at the beginning of the year: the vote on the new federal road 
infrastructure plan was only passed at the end of June 2012, which caused 
delays in State public spending.
In Canada, revenue figures were up with unchanged scope of business and
identical exchange rates, reaching a record high in a resilient economy 
boosted by the dynamic mining and oil & gas sectors. 
In the Rest of the World, revenue increased 15% at 1.5 billion euros (+ 11 %
with unchanged scope of business and identical exchange rates). Business is on
the rise in the French Overseas Departments, despite a difficult market in the
French Caribbean, as well as in Africa and the Indian Ocean. Asia and 
Australia recorded strong growth. 
Specialized activities: 
Revenue is up 6% at 2.3 billion euros, with different trends in each line of
business: revenue for Sales of refined products increased sharply (+ 28 %),
boosted by price hikes for reduced crude oil that is used as a raw material; 
the Railways sector enjoyed growth (+ 10%), mainly in international 
operations; Road Safety and Signaling revenue remained stable with unchanged 
scope and exchange rates; Waterproofing managed to hold up (-2 %) despite a 
sluggish building market in France; Pipelines suffered a drop (-12 %), in the 
absence of major pipeline projects. 
Operating profit totaled 406 million euros (466 million euros in 2011)  
Operating profit totaled 406 million euros, against 466 million euros in 2011
with an operating profit margin of 3.1% (3.8 % in 2011). This trend reflects: 
- a drop in profitability in North America, with a difficult year in the  


    United States where the market was less favorable than expected and losses 
    were incurred due to the launching of an itinerant low-cost maintenance 


business in States where Colas does not have a permanent foothold,
  - a loss in the Sales of refined products, as the price hikes for crude oil  
used as a raw material were not able to be entirely passed on to sales  
prices of certain products, in a crisis-ridden refining market,
  - good performance of the road business in mainland France, that helped 
stabilize profitability, despite unfavorable weather during the first half 
year,
  - improved results in central Europe, where the target breakeven point was 


    reached thanks to a series of adaptation measures carried out since 2010.

Net profit attributable to the Group totaled 302 million euros (336 million
euros  in 2011)
 
After financial results of -18 million euros, close to the 2011 figures (-21
million), income tax expenses of 137 million euros (163 million euros in 2011)
and income from associates that remains unchanged from 2011 at 59 million 
euros, net profit attributable to the Group amounts to 302 million euros 
(336 million euros in 2011).

Solid financial structure 

Net cash flow totaled 723 million euros, virtually identical to 2011.

Net capital expenditure amounted to 316 million euros (2), down 85 million 
euros from the previous year, thus proving the Group's ability to control and 
adapt its rate of investment.

Free cash flow(2) hence totals 407 million euros, an improvement from 2011 
(327 million euros). The Group was able to pursue its dynamic, targeted growth
policy, notably in construction materials and railways. Net financial
investments (shares, including buying back of shares from minority interests,
and assets) amount to 88 million euros (102 million euros in 2011).

The Group's financial structure is solid, with a high level of shareholders'
equity at 2,544 million euros and net debt at 170 million euros as of the end 
of December 2012, a change from end-2011 (net cash at 28 million euros) that
reflects additional working capital requirements.

Net profit at Colas 

Net profit for the parent company Colas amounted to 253 million euros, 
compared to 325 million euros in 2011.

Dividend 

The Board of Directors has decided to put forward a proposal to the General
Shareholders' Meeting on April 16, 2013 to pay out the same dividend as in 
2012, i.e., a dividend of 7.26 euros per share (total amount distributed: 
237 million euros(3)). As such, the Group maintains its dividend at a high 
level.

Work-on-hand 

The year 2012 was marked by a number of successful commercial endeavors.
Highlights include the Nîmes-Montpellier high-speed railway bypass (order
intake: 310 million euros for Colas), the extension of line 1 of the Algiers
metro (order intake: 46 million euros for Colas Rail) and an 8-year 
maintenance contract for the central London road network (total contract value 
estimated at 420 million pounds, of which Colas Ltd has a 40% share).

Colas has started off 2013 with a high level of work-on-hand at 6.7 billion
euros as of end-December 2012 (3.5 billion euros for mainland France), up 4%
over one year (+5% in mainland France; +2% in the international units and 
French Overseas Departments and Territories).

(2) Excluding acquisition of assets attributable to external growth (EUR29 M 
in 2012, EUR13 M in 2011)
(3) Based on number of shares on December 31, 2012

Outlook 

The Group's work-on-hand allows it to get off to a healthy start in 2012,
despite an economic backdrop that remains tainted by low visibility. The
hypotheses for outlook on Colas' main markets in 2013 are as follows:

  - Roads sector:
    o mainland France's market should be very similar to that of 2012: despite
      uncertainties, it will in fact benefit from ongoing major projects, 
      urban public transport programs, and the completion of many projects 
      prior to the municipal elections in 2014;
    o the United States should benefit from the new federal infrastructure 
      plan passed in June 2012, a slight economic recovery and improved 
      advanced construction indicators;
    o revenue should remain high in Canada in 2013, albeit lower than the 
      record 2012 figures, in a Canadian market that will remain upbeat in the 
      medium term;
    o outlook is good for business in Asia/Australia;
    o no significant changes are foreseen in the other areas (Europe, Africa 
      and Indian Ocean, French Overseas Departments);
     - Growth is expected for Specialized activities. Railways should continue to
    make headway, boosted by good work-on-hand and numerous international
    opportunities. In a refinery market that should remain downbeat in 2013, 
    revenue for the Sales of refined products should mechanically increase 
    because the processing contract pursuant to which Total marketed 40% of 
    SRD's(4) production has come to an end as of January 1, 2013.

(4) Société de la Raffinerie de Dunkerque

Colas has rolled out action plans aimed at improving competitiveness, in
particular:

  - a new organization for the Group's road companies in mainland France, to
    simplify operations and make operational management more efficient;

  - an action plan in the United States that includes putting an immediate 
    halt in 2013 to business activities that negatively impacted 2012;

  - measures to progressively improve results in the Sales of refined products:
    diversifying supply sources and better optimizing production.

On the basis of all available data, a first hypothesis for revenue in 2013 has
been set at 13.2 billion euros (+1% from 2012).

Compensation of Corporate Officers 

In compliance with AFEP-MEDEF recommendations, information regarding the
compensation of corporate officers and the granting of stock options is
available on line as of this day at www.colas.com 

The Statutory Auditors have duly audited and certified the financial 
statements.

Financial statements and notes are available at www.colas.com.

A presentation for financial analysts will be held on February 28, 2013 at 9:00
am and will also be made available at Colas www.colas.com.
    For further information: Ms. Delphine Lombard (tel.: 33 1 47 61 76 17) -
                            lombard@siege.colas.fr

Consolidated condensed income statement for 4th quarter 2012 

in millions of euros                       4th quarter       Change
                                         2012       2011    2012/2011

Revenue                                 3,366      3,244     + 4 %

Operating profit                         170        192     - 11 %

Net profit attributable to the 
Group                                    124        127      - 2 %

Revenue in 2012 by business segment 
                                                                 Change with


                                                              identical
in millions of euros            2012        2011     Change       scope and 
                                                2012/2011   exchange rates 
Roads Mainland France          5,187       5,143      + 1 %         + 1 %
Roads Europe                   1,479       1,478        =           + 1 %
Roads North America            2,583       2,348     + 10 %         + 2 %
Roads Rest of the World        1,486       1,295     + 15 %        + 11 %
Total Roads                   10,735      10,264      + 5 %         + 2 %
Specialized activities         2,275       2,141      + 6 %         + 4 %
Parent company                   26          7         ns            ns
TOTAL                         13,036      12,412      + 5 %         + 3 % 
Revenue in 2012 by geographic zone  
in millions of euros            2012        2011     Change 
                                                2012/2011 
Mainland France                6,905       6,831      + 1 %
French Overseas Departments     458         419       + 9 %
France                         7,363       7,250      + 2 %
North America                  2,591       2,356     + 10 %
Europe (excl. France)          1,945       1,860      + 5 %
Rest of the World(5)           1,137        946      + 20 %
International                  5,673       5,162     + 10 %
TOTAL                         13,036      12,412     + 5 % 
(5) including French Overseas Territories 
                  
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-0- Feb/27/2013 11:02 GMT
 
 
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