Spain’s ACS Swings to First-Half Loss on Iberdrola Adjustment

Actividades de Construccion & Servicios SA, Spain’s biggest construction company, reported a first-half loss after it sold part of its stake in Iberdrola SA (IBE) and adjusted the value of the remaining holding.

The net loss was 1.23 billion euros ($1.54 billion) compared with profit of 604 million euros a year earlier, the Madrid-based company said in a statement today. Sales doubled to 18.83 billion euros from a year earlier, boosted by the acquisition of a stake in Hochtief AG (HOT), a German builder. Including that stake in the year-earlier period, revenue rose 6 percent.

The builder had a 599 million-euro loss from the sale of a 3.69 percent stake in Iberdrola in April, and ACS also took a 962 million-euro charge to adjust the value of its remaining 14.85 percent stake. ACS also provisioned 302 million euros for potential losses related to the refinancing of Iberdrola investments.

ACS shares fell as much as 2.9 percent and traded 1 percent lower at 15.50 euros as of 9:47 a.m. in Madrid trading, valuing the company at 4.9 billion euros.

Net debt at the end of June was 8.58 billion euros, 13 percent lower than a year earlier.

To contact the reporter on this story: Manuel Baigorri in Madrid at

To contact the editor responsible for this story: Kenneth Wong at

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