FCC sees 2005 sales up 4-6% and earnings up 8-10% (ES)

Fomento de Construcciones y Contratas SA (FCC) said it is targeting acquisitions in strategic areas, after a six-year period in which the company's growth policy has been based largely on internal development.

In a presentation, FCC said it plans to continue increasing its weight in the services sector, adding that it also plans to boost its international activities to account for 35-40 pct of total group sales in the next three years.

Sales are forecast to grow 4-6 pct in the full-year to Dec 31 from the 6.285 bln recorded in 2004, on an 8-10 pct rise in EBITDA, up from 851 mln, it said.

Sales are seen doubling to 10-12 bln eur in the next three years, with EBITDA increasing twofold to 1.4-1.6 bln.

FCC's cash position enables to the group to invest over 3 bln eur to achieve its growth goals, it said, while noting that it plans to maintain gearing below 50 pct, with a debt to EBITDA ratio of 2.5 times.

At end-2004, FCC's net debt stood at 250 mln eur.

Source: Freeman

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