PARIS (dpa-AFX) - French construction services provider Bouygues SA (BOUYY.PK) reported Wednesday a decline in the second-quarter net profit, while operating profit improved from last year. Sales edged down amid weak European markets, despite good results at construction businesses. Going ahead, the company expects improved profitability, but lower to stable sales.
The second-quarter net profit attributable to the Group declined 5 percent to 230 million euros from last year's 243 million euros. Operating profit for the period, however, advanced 10 percent to 432 million euros from 394 million euros a year ago.
The company's sales edged down to 8.51 billion euros in the quarter from prior year's 8.52 billion euros.
For the first half, attributable net profit fell 32 percent year-over-year to 188 million euros, and sales dropped 2 percent to 15.21 billion euros. Sales from France declined 2 percent, and international sales went down 1 percent.
Earnings before interest, tax, depreciation and amortization or EBITDA, a key earnings metric, was 945 million euros, 20 percent lower than last year.
The company's order book at the end of June 2013 was 27.26 billion euros, 5 percent lower than last year's 28.57 billion euros. The order book excludes a number of recent major contracts, notably the Tuen Mun-Chek Lap Kok tunnel in Hong Kong, worth 1.15 billion euros.
The company noted that its construction businesses posted a good commercial performance, while TF1 and Bouygues Telecom showed resilience in a highly competitive environment.
TF1 segment's sales fell 7 percent, and Bouygues Telecom's sales declined 15 percent. The company attributed the 'greater-than-expected' fall in Telecom sales to a moderate commercial performance and the growing share of SIM-only sales.
Looking forward, Bouygues expects fiscal 2013 consolidated sales to range between 33.2 billion euros and 33.4 billion euros, depending on final sales figure of the construction businesses. The forecast represents a decline of 1 percent to stable sales in relation to 2012.
'In keeping with the second quarter of 2013, profitability should improve in the second half of 2013, meaning that 2012 should mark the low point in the Bouygues group's profitability,' the company said in its statement.
For the year, Bouygues Telecom has revised its sales target for 2013 downwards from the earlier announced view of 4.85 billion euros - 4.6 billion euros to take account of strong growth in SIM-only sales and a moderate commercial performance in the first half of 2013, the company added.
Bouygues Telecom, however, confirmed its objective of stabilising EBITDA at 900 million euros and improving its 'EBITDA minus Capex' item, due to the effectiveness of its transformation plan.
In Paris, Bouygues shares closed Tuesday's trading at 22.93 euros, down 0.71 euros or 3 percent.
Copyright RTT News/dpa-AFX
© 2013 AFX News
