Bouygues Sees 2012 Sales Drop After 2011 Profit Beats Estimates
Stock Chart for Bouygues SA (EN)
Bouygues SA (EN), the French building, television and telecommunications company, reported a 2011 profit that beat analyst estimates and said revenue this year will fall by 1 percent, led by its mobile-phone business.
Operating profit excluding one-time items climbed 3 percent to 1.82 billion euros ($2.45 billion), the Paris-based company said in a statement today, beating an average estimate of 1.79 billion euros from 10 analysts surveyed by Bloomberg.
Sales, which rose by 5 percent to 32.7 billion euros in 2011, may fall to 32.35 billion euros this year as revenue at Bouygues Telecom, France’s third-largest mobile-phone operator, may recede by 10 percent to 5.14 billion euros, Bouygues said.
The company said it will implement “cost savings” at Bouygues Telecom this year to adapt to the arrival of Iliad SA on France’s mobile phone market at the start of 2012, and as a planned cut in so-called call-termination rates will shave about 350 million euros in revenue.
Bouygues will pay a dividend of 1.60 euros per share in 2012, unchanged from a year earlier. That’s after net income was unchanged from 2010 at 1.07 billion euros. The company said its stake in Alstom SA added 190 million euros to net income last year, down from 235 million euros a year earlier.
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