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Strong growth in business during first half-year 2008

 
 

08/27/2008

Revenue : € 5.6 billion (+ 14.3%) Operating profit : € 156 million (+ € 20 million) Net profit (Group share) : € 130 million (+ € 13 million)

The Board of Directors of Colas, chaired by Mr. Hervé Le Bouc, met on August 27, 2008 to examine the half-year statement of accounts and the outlook for the current year.

As of June 30, 2008, consolidated revenue at  the Colas Group totaled 5.631 billion euros, a 14.3% rise from the 4.925 billion euros recorded the end of June 2007 (+10.3% with identical xchange rates and scope of business).  The first half-year of 2008 thus reflected strong rowth in practically all of the Group’s businesses, even if sharp raw material price hikes, in articular bitumen and energy, did played a role in the increase.

 

In France :

Revenue at the end of June 2008 amounted to 3.54 billion euros, up 12.3% (8.3% with unchanged scope of business) compared to the end of June 2007.  In Mainland France, the road sector remained buoyant (+7%) and other road related activities enjoyed strong growth (+30%), due mainly to the railway and waterproofing businesses.  In the French overseas departments, revenue rose 10%, boosted for the most part by the Reunion Island’s building, public works and civil engineering sectors.  
 
International :

At the end of June 2008, revenue in the Group’s international units and French overseas territories totaled 2.1 billion euros, an increase of nearly 18% compared to June 30, 2007 (+14% with identical exchange rates and scope of business). 
In Europe, revenue was up 27% (17% with  identical exchange rates and scope of business) at 993 million euros, thanks in particular to central Europe’s strong road activity and to the railway sector.  
North America posted 637 million euros in revenue, a drop of nearly 10% essentially attributable to the weakening of the dollar vs.  the euro. With identical exchange rates and scope of business, revenue figures were practically the same as  those recorded at the end of June 2007 (-0.7%). The American subsidiaries held up well against a less buoyant backdrop whereas the Canadian companies continued to benefit from an upbeat market.  
Revenue in the rest of the world amounted  to 464 million euros, a 60% increase (42% with identical exchange rates and scope of business), thanks notably to subsidiaries in Morocco and Madagascar and to the consolidation of the recently acquired Australian company.   
 

Consolidated net profit (Group share) as of June 30, 2008 : 

The Group share of net profit reached 130 million euros, compared to 117 million euros on June 30, 2007, thus reflecting the good performance of the Group’s businesses during the first half-year.  

Outlook : 

Colas enjoyed strong growth during the first half-year 2008.  Work-on-hand at the end of June 2008 amounted to 7.1 billion euros, a 4% rise compared to the end of June 2007 which was already in itself at a record high level. In light of the less buoyant, more difficult to forecast economic and financial environment, and according to all currently available data, revenue for 2008 should total roughly 12.6 billion euros.  If there are no further slumps in the economic environment or unfavorable weather before the end of the year, the Group share of net profit should improve from the 474 million euros recorded at the end of December 2007.