Grupo Dragados first quarter profit reaches 39,4 million euros

Aggregate sales increase 8.4% in the quarter and net sales 9.2%. The drop in concession activity in Argentina and the reduction of extraordinary gains in the Services Division have brought net profit down by 2.6%.

Grupo Dragados net profit in the first quarter of 2002 reached 39.4 million euros, 2.6% less than in the first quarter of 2001 and gross operating profit grew 6% in the same period to 50.2 million euros. Grupo Dragados maintains its expectations for the end of the year, since these results are in line with the companyÂ's prospects.

Net sales amounted to 1.189 million euros, which represents a 9.2% growth compared to the same period of 2001, while aggregate revenues added up to 1.280 million euros, 8.4% more than last year.

The weaker performance of net earnings comes as a consequence of three factors: the significant slowdown of the concession business in Argentina; the reduction of the stake owned by the Group in CODAD, the society which manages the airport concession of El Dorado (Colombia), from 44% in first quarter 2001 to 15.8%, after the sale to Aurea in September 2001; lower extraordinary results compared to those generated in the first quarter of 2001 due to the disposal of non-strategic assets in the Services Division.

In terms of business areas, aggregate sales of the Services Division advanced 7.5% during the first three months of the year to 307.7 million euros. The Construction Division grew 9.2% to 682.8 million euros and the Industrial Division reached 224.9 million euros, 13.4% higher. Revenue from Concessions declined 13.6% to 33.8 million euros, due to the reasons above mentioned.

At the pre-tax profit level, which added up to 55 million euros, Construction grew 13.7%, Industrial 3.1%, while Concessions decreased 29.1% due to the slowdown of concession activity in Argentina and the reduction of the GroupÂ's stake in CODAD. On the other hand, the Services Division decreased its pre-tax profit by 38.5%, compared to the extraordinary results generated last year after the sale of the temporary employment company Mentor and the static advertising society Mobiliario Urbano.

In the first three months of the year Grupo Dragados has provisioned 2.9 million euros for the 2.9% stake the company owns in Jazztel.

Grupo Dragados has invested 78.3 million euros in the first quarter of the year, mainly oriented to sewage treatment and port logistics within the Services Division.

(source: Grupo Dragados)

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