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| Bouygues confirms full-year target French construction and telecoms conglomerate Bouygues reported €1,798 million in operating profit in the first nine months of 2008, up 2%. Net profit rose 7% to €1,202 million and sales increased 13%. These results continue the trend observed in the first half-year. Excluding TF1, operating profit rose 9% and net profit 10%. Bouygues Construction reported a 16% increase in sales and a 12% rise in operating profit. Net profit came to €232 million, up 5%. Business activity remained brisk, with the order book up 16% year-on-year to €12.5 billion and order intakes in the first nine months up 5% to €8.4 billion. Bouygues Immobilier sales rose 54%, resulting from a high level of reservations in the last two years. Net profit increased 33% to €92 million, taking into account the higher financial expenses stemming from the increase in the working capital requirement. In a market that sharply deteriorated in the third quarter, Bouygues Immobilier reservations fell 44% compared with the first nine months of 2007 (down 22% for housing reservations in a market that contracted 35%). The order book came to €3.5 billion (-5%), representing 15 months' sales. Colas performed well across all the geographical areas where Bouygues Group is present, with a 13% rise overall. Net profit rose 4% year-on-year, from €361 million at end-September 2007 to €376 million. The order book remained at a high level, totalling €6.3 billion (down 5%). Cash flow rose 5% to €2.75 billion. Group net debt at 30 September was €5.7 billion, up €538 million year-on-year, a result of increased capital expenditure, mainly at Bouygues Telecom, and financial investments, to acquire Alstom shares. The Group maintains a high level of liquidity and an evenly spread debt repayment schedule thanks to its financial policy. The successful one billion euro 7-year bond on 3 July 2008 enabled the Group to proceed with the early refinancing of the redemption in May 2009 of a bond issue for the same amount. The debt ratio was stable compared with end-September 2007, at 66%. Based on the group's sales in the first nine months and business indicators, Bouygues has confirmed its 2008 sales target of €32.5 billion. write your comments about the article :: © 2008 Construction News :: home page |