PR Newswire/Les Echos/ PRESS RELEASE 27 February 2013 SOLID GROWTH IN RESULTS * Sales: EUR14bn (+2.2%, +2.6% like-for-like) * Operating profit on ordinary activities: EUR1.2bn (+8.6%) * Net profit (group share): EUR220m (+7.3%) * Net financial debt: EUR176m reduction in 2012 (EUR744m reduction since 31 December 2010) The Board of Directors of Eiffage met on 27 February 2013 to approve the financial statements for the year ended 31 December 2012. The audit procedures have been completed and the auditors' report on the financial statements is in the process of being issued. 2012 SALES Eiffage recorded another increase in its sales in the year ended 31 December 2012, up 2.2% to EUR14bn (equivalent to a 2.6% increase like-for-like, bearing in mind a number of loss-making subsidiaries were wound up in 2011). The Construction division recorded a 0.4% increase in sales to EUR3.8bn, buoyed by upbeat activity in France (4% increase) in contrast to European subsidiaries which are down 12.9%). As regards the Property Development business, activity held up, with sales of EUR599m (4.2% increase), thanks notably to housing, which is one of the division's strengths. The Public Works division recorded a 1.3% increase in sales to EUR3.9bn, reflecting 2.5% growth in France (which was particularly strong for all businesses in the fourth quarter) and a 6.9% contraction at subsidiaries in Europe, due mai nly to the weakness of the Spanish market. The Energy division recorded a 2.7% increase in sales to EUR3.2bn, with growth of 1.4% in France and 8.5% in the rest of Europe where increases were recorded by the division in its principal markets. As expected, the Metal division recorded a 15.1% rebound in sales to EUR0.9bn in 2012, with notably the completion of the Ofon offshore platform for Total in Nigeria. Note that, at the level of the Group, business outside Europe increased by 42.9% and although the top line contribution remains modest at EUR243m, this is a new avenue of development for the Group. Revenue contributed by the Concessions increased by 1.4% to EUR2.2bn. APRR recorded a 0.8% increase in sales despite a 1.7% decrease in traffic over the year as a whole. The other concessions and Public Private Partnerships recorded an 11.7% increase in sales to EUR137m, of which EUR18m was contributed by projects brought into service recently. 2012 RESULTS Operating profit on ordinary activities increased by 8.6% to a record high of EUR1,199m, the operating margin improving from 8.0% in 2011 to 8.5% in 2012. The Contracting division posted by far the stronger increase in operating profit on ordinary activities, with a 25% increase, the operating margin improving from 2.3% in 2011 to 2.8% in 2012. The Construction division made another solid contribution (4.2% operating margin). The reorganisations and efforts to raise worksite productivity at the Public Works division yielded results in 2012, paving the way for an improvement in the operating margin (1.3% compared with 0.2% in 2011). At the Energy division, the efforts made since 2011 continued in the year ended, bringing about an improvement in the operating margin (3% compared with 2.5% in 2011). Finally, at the Metal division, the high level of activity lifted the operating margin to 3.1%, compared with 2.2% in 2011. Operating profit on ordinary activities contributed by the Concessions division increased by 3.1% to EUR893m, the operating margin improving from 40.4% in 2011 to 41.1% thanks to the excellent performance achieved by APRR (EBITDA margin increased from 69.2% in 2011 to 70% in 2012) and to the contribution made by Public Private Partnerships brought into service at the end of 2011 and in 2012. Net finance costs increased by EUR96m, mainly as a result of the refinancing of Eiffarie's debt in February 2012, the loan terms not being as favourable as those negotiated when this refinancing was first put into place. Despite the higher net finance costs, the net profit (group share) increased to EUR220m in 2012, up 7.3% from EUR205m in 2011, bolstered by the turnaround in the operating margin, especially at the Contracting division, in line with the roadmap drawn up by the Group. FINANCIAL SITUATION In January 2012, APRR issued EUR500m of six-year bonds offering a coupon of 5.125%. APRR also arranged a seven-year loan amounting to EUR75m with the EIB, which will be used to fund the company' s investment programme. On 20 February 2012, Eiffarie and its subsidiary APRR signed two loan agreements with a pool of 17 international banks. These agreements renewed for five years a EUR0.7bn standby credit for APRR and a EUR2.8bn structured credit for Eiffarie. This refinancing will enable APRR to distribute to its shareholders dividends representing 50% of average free cash flows over the term of the loan, at the same time strengthening its credit rating. Accordingly, on 26 September 2012, Fitch Ratings assigned APRR a long-term credit rating of BBB+ with a stable outlook. For its part, Eiffage SA i mproved its liquidity and diversified its sources of financing thanks to a EUR75m private placement for five years. These operations, along with the long-term financing secured for the public private partnerships awarded in 2012 (eight secondary schools in Seine-Saint-Denis and "GreEn-ER" in Grenoble, part of the Campus plan), bear testimony to the confidence of the banks and markets in the Group's creditworthiness. Net debt, excluding the marked to market value of the CNA debt and of the swaps - amounted to EUR12.5bn, a decrease of EUR176m over 12 months (and of EUR744m over 24 months). Note that most of the Group's EUR12.3bn of net debt, almost all of which bears fixed rates, is held by the Concessions division, without recourse against Eiffage. The net debt of the Holding company and Contracting division is stable at EUR131m. After the decrease recorded in 2011, there was another reduction in working capital requirements in 2012, down EUR138m, underlining the tight cash management at the level of the Contracti ng division. The Group has significant liquidity, amounting to EUR1.5bn and consisting of available net cash of EUR760m and an unused credit line of EUR700m. GENERAL MEETING - DIVIDEND Eiffage SA recorded a net profit of EUR178m in 2012 compared with EUR164m in 2011. At the General Meeting convened on 17 April 2013, the Board of Directors will propose distributing an unchanged dividend of EUR1.20 per share. This dividend will be paid on 30 April 2013 on the 87.162.131 shares of EUR4 nominal each that make up the capital as well as on the shares to be issued in connection with the capital i ncrease reserved for employees decided by the Board of Directors on 27 February 2013. 2013 PROSPECTS The order book came to EUR12.2bn at 1 January 2013, down by 9.7% compared with 1 January 2012. It is up 13% from 1 January 2011 and remains at an historically high level. Group sales are expected to increase to EUR14.2bn in 2013, with the Group remai ning in a position to be selective in the order intake. For this reason, and given continuing efforts to achieve cost efficiencies and improve work site productivity, operating profit on ordinary activities and net profit (group share) can be expected to increase further in 2013, while there should be another decrease in net debt. A more detailed presentation of the financial statements for the year ended 31 December 2012, in French and English, is available on the company's website: www.eiffage.com The content and accuracy of news releases published on this site and/or distributed by PR Newswire or its partners are the sole responsibility of the originating company or organisation. Whilst every effort is made to ensure the accuracy of our services, such releases are not actively monitored or reviewed by PR Newswire or its partners and under no circumstances shall PR Newswire or its partners be liable for any loss or damage resulting from the use of such information. All information should be checked prior to publication. -0- Feb/28/2013 08:25 GMT
EIFFAGE - 2012 sales
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