Sacyr Vallehermoso first nine months results (ES)

Sacyr Vallehermoso group (SyV) obtained a net attributable profit of € 235.4 million in the first nine months of 2004. This profit represents an increase of 0.5% with respect to the same period last year. This increase in result is produced with lower extraordinary income. Ordinary revenue grew 63.8% to € 304.7 million with respect to the preceding fiscal year.

Gross operating profit grew 66.3% to € 548 million. The following divisions contributed especially to this significant improvement: construction (+33.3%), property development (+25.5%) and infrastructure concessions (+194.4%). Cash flow reached € 365.7 million, up 20.5%.

Turnover grew 29.75% to € 2,516 million. Worthy of mention in this chapter are the integrations of Somague and ENA and the favorable performance of Sacyr and Vallehermoso.

The most significant investments made in the year were 140 million for the purchase from the Town Hall of Madrid of a building site on Paseo de la Castellana for construction of a hotel and office tower, and € 497 million in residential land. At September, the group´s total assets were € 12,522.6 million. Consolidated corporate debt was € 1,173 million.

Construction (Sacyr-Somague)
Turnover reaches € 1,471 million, with gross operating profit of € 111.6 million, up 33.3% on the same period in 2003. Net profit was 50.8 million 12.6%. The principal contracts awarded in this period were the connection of the M-30 with the N-III for the Town Hall of Madrid (€ 147.2 million), works on lines 1, 4 and 7 of the metro for the Community of Madrid (€ 191 million) and housing units for Vallehermoso (€ 58.2 million). The total for contracts awarded in the year amounts to € 1,524.3 million (this figure doesn´t include € 765 million awarded in Italy recently).

Housing development (Vallehermoso)
Net profit reached € 82.8 million, up 25.8% on the period through September of last year. Gross operating profit grew 25.6% to 148.8 million. Turnover reached 736.5 million, up 16.1%. In the first nine months of the year, Vallehermoso contracted 2,669 residences, up 3.1%, for an amount of € 658.1 million, up 12%.

Infrastructure concessions (Itinere-ENA)
This division experienced significant growth as a consequence of the integration of ENA and the improvement of traffic. Revenues rose 170.1% to € 241.5 million, yielding gross operating profit of 185.7 million, up 194.4%. The greater financial burden due to the purchase of ENA, negative exchange rate differences and the impact of minority interests caused a reduction in net profit of 67% to € 7.3 million, but have already inverted the unfavorable trend of the previous quarter. Traffic on all highways in Spain and Chile performed positively.

Property Division (Testa)
The property subsidiary reduced the sale of real estate assets, thus reducing its net Profit to € 93.5 million, down 34.3%, but with an operating profit of 108.8 million, up 9.2%. Turnover coming from medium and long-term leases improved 5.1% and reached € 142.9 million.

Services (Valoriza)
The services businesses within Valoriza grew 62.1% to a turnover of € 54.2 million. Gross operating profit was € 2.2 million in the black, and net income suffered slight losses of 0.61 million. By areas of activity, Valoriza´s turnover stems 11.6% from Sadyt and the water treatment concessions, 32.9% from alternative energy, 33.5% from integral real property maintenance, and 15.7% from the service areas on highways and thoroughfares.

The third quarter of the year so the successful close of the tender offer launched by SyV in the Portuguese market on 6.07% of the capital of Somague, in compliance with Portuguese law. There is a standing order to purchase Somague shares on the Portuguese stock exchange in effect through January 25, 2005.

As at September 30, SyV group´s workforce amounted to 10,127 persons.

Source: Grupo SyV

Related News