Press release
25.08.2009

First Half-Year 2009

Revenue: € 5.1 billion (- 9.2%)<br>
Work-on-hand at end of June 2009 is stable at high level<br>
Operating profit: € 75 million (€ 156 million at the end of June 2008)<br>
Net profit (Group share): € 58 million (€ 130 million at the end of June 2008)

The Board of Directors of Colas, chaired by Mr. Hervé Le Bouc, met on August 25, 2009 to examine the half-year statement of accounts as of June 30, 2009 and outlook for the current year.    Consolidated key figures

 In millions of euros1st  half-year 20091st half-year 2008 Variation
1st half-year
 Reference full year 2008
 
Consolidated revenue5,1165,631 (9.2) %12,789
 
Operating profit75156 (81) M€ 682
Consolidated net profit (Group share)58130 (72) M€490

As of June 30, 2009, the Colas Group posted consolidated revenue totaling 5,116 billion euros, compared to 5,631 billion euros at the end of June 2008, down 9.2% (9.7% with identical exchange rates and scope of business).  The half-year 2009 bears witness to the overall global economic slowdown, poor weather during the first quarter, and the completion of several non-renewed major projects.  Business has yet to benefit from the positive impact of national stimulus plans given the amount of time it takes for the programs to be rolled out.      

France:

At the end of June 2009, revenue amounted to 3.15 billion euros, an 11.1% drop compared to the end of June 2008. In Mainland France, the road business has receded roughly 13%, while non-road related activities are almost stable thanks to the railway and waterproofing sectors.  The first half-year 2009 was marked by poor weather at the beginning of the year, a sharp drop in private investment, and the postponing of investment by local authorities as they wait for the trickle down effect of the government’s economic stimulus plans. In the French Overseas departments, despite progress in French Guiana, figures were down nearly 17%, as business shrank as forecast in Reunion Island (completion of the major Tamarind Road project), and the French Caribbean was witness to major social unrest.   

International:

At the end of June 2009, revenue in the Group’s international units and French Overseas territories totaled 2.0 billion euros, a 6% decrease from June 30, 2008 (6.1% with identical exchange rates and scope of business). In Europe, revenue amounted to 855 million euros, down nearly 14% (only 8.3% with identical exchange rates and scope of business).  The drop was recorded in northern Europe, namely Belgium and Ireland, along with central Europe where the economic crunch has hit especially hard in Hungary and Romania.   Revenue in North America rose to 646 million euros (+ 1.4% and -7.6 % with comparable exchange rates and scope of business).  Projects got off to a later than usual start in Canada.  In the United States, the positive impact of stimulus plans in favor of road construction will be felt during the second half-year.  Revenue elsewhere around the world was comparable to that recorded at the end of June 2008, at 469 million euros, thanks in particular to business in Morocco and Asia.    

Consolidated net profit (Group share) on June 30, 2009:

Consolidated net profit amounted to 58 million euros, against 130 million on June 30, 2008, a drop that reflects a slowdown in business, poor weather during the first quarter and the erosion of profit margins due to highly competitive markets, notably in France.    

Outlook:

Work-on-hand at the end of June 2009 remained stable compared to the end of June 2008, at 7.2 billion euros.  The impact of the global economic and financial crisis that began to affect the majority of the Group’s businesses during the middle of 2008 has now come full swing in 2009.  In France, the stimulus plan could help boost business volumes during the second half-year.  In Europe, revenue figures should continue to decline.  In North America, the Group’s companies should enjoy a good year.  Colas will continue to focus on profitability rather than volume.  Against a backdrop that remains uncertain, the hypothesis for revenue put forward in February 2009 at 12.3 billion euros remains unchanged.  Policy is regularly updated to adapt to changes in the marketplace (controlling cost and investments, optimizing organization).  The high quality of Colas’ businesses will enable it to stand firm during the slowdown even though the Group’s business levels have remained high, and to continue to be in a position to respond to major infrastructure needs in the medium-term in France and around the world.

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Delphine Lombard
01 47 61 76 17 - lombard@siege.colas.fr