The civil engineering group Impregilo SpA forecast an increase in its order book to â¬8 bln in 2007 from 5 bln in 2004. In an outline of its 2005-2007 business plan, Impregilo estimated that infrastructure development in the markets in which it is present will total â¬65 bln over the next three years, â¬45 bln of which is represented by large public works in Italy.
Impregilo expects to net about â¬10 bln in orders.
The group said it plans to reduce invested capital through the sale of concessions which tend to immobilise capital over a long period.
It also expects return on sales to rise to more than 8⬠by end 2007 from 4.3 pct in 2004 thanks to a reduction in costs and improved efficiency.
In 2007, value of production -- which consists of sales plus work in progress on long-term contracts -- is expected to remain in line with 2004, while the debt/equity ratio is forecast to fall to below 0.5 from 3.1.
The company also said that it will repay a â¬200 mln bond expiring today.
Earlier this month, cash-strapped Impregilo agreed a â¬680 mln bridging loan with Banca Intesa SpA, Unicredito Italiano SpA and Sanpaolo IMI SpA, which will largely be used to repay outstanding bonds.
www.efreeman.co.uk
Source: Freeman News
