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| Bouygues announces first quarter 2007 results French construction giant Bouygues achieved a solid performance in the first quarter of 2007. Sales rose by 13%, current operating profit was up 21% and net profit attributable to the Group climbed 28%. Commercial activity remained buoyant, particularly in the construction businesses. The group's performance in the first quarter of 2007 is in line with the expected trend for the full year. However, the individual results of the group's different businesses in quarterly periods, in particular the first quarter of a fiscal year, may not be representative of full-year performance. Bouygues Construction's operating margin (2.8%) was down compared with the first quarter of 2006, when major construction projects were delivered. Conversely, several large-scale projects got under way in the first quarter of 2007. In the start-up phase, margins are low due to contingency reserves, which may be released as works progress or upon their completion. The apparent decline in Bouygues Immobilier's profitability was mainly due to temporarily unfavourable comparatives (capital gain of 11 million euros reported in the first quarter of 2006). Reservations in both the residential and commercial property sectors reached a high level. Colas had a very good first quarter due principally to favourable weather. write your comments about the article :: © 2007 Construction News :: home page |