Vinci Says Tax Surcharge May Hurt Profit as Sales Beat Estimates
Stock Chart for Vinci SA (DG)
Vinci SA (DG), Europe’s biggest builder, reported third-quarter sales that beat analysts’ estimates and said a tax surcharge considered by the French Parliament may hurt 2013 net income.
Revenue climbed 5.5 percent in the three months through September to 10.82 billion euros ($14.9 billion), spurred by a rebound in highway traffic, road works in France, and construction projects abroad, the company said in a statement today. That beat the average estimate of 10.46 billion euros in a Bloomberg survey of five analysts.
Vinci reiterated its outlook for “slight organic” revenue growth for the full year and also forecast a “slight decline” in operating income. A surcharge considered by French lawmakers “would negatively impact” net income, said the company, based in Rueil-Malmaison near Paris.
Vinci shares rose 0.8 percent to 47.62 euros in Paris, giving the company a market value of 28.6 billion euros.
To counter a slowdown in infrastructure spending in Poland and other central European countries following the completion of projects, Vinci agreed in December to purchase Portuguese airport operator ANA-Aeroportos de Portugal SA for 3.1 billion euros. The company raised its stake in Aeroports de Paris to 8 percent in July.
Vinci has sent information to potential buyers of its parking-lot business that may fetch as much as 2 billion euros, two people familiar with the matter told Bloomberg this month.
The company’s order book stood at 30.8 billion euros at the end of September, down from 32.8 billion euros a year earlier. The backlog will remain at a “high level” this year as Vinci has yet to book “significant” contracts for metro lines in France and Chile and for a stadium in Moscow.
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