RUEIL-MALMAISON (dpa-AFX) - Vinci SA (VCISY.PK) reported that consolidated revenue for the first quarter of 2016 amounted to 8.025 billion euros down 1.8% compared with the first quarter of 2015 on an actual basis and down 3.3% like-for-like, i.e. after adjusting for currency movements (negative impact of 0.8%) and changes in the consolidation scope (positive effect of 2.4%).
Within the Contracting business, changes in scope mainly comprised the acquisitions of Orteng, APX and J&P Richardson at VINCI Energies and the acquisitions of HEB and Grupo Rodio Kronsa at VINCI Construction.
The order book at 31 March 2016 was stable year-on-year at 29.2 billion euros (up 5.5% relative to 31 December 2015), representing almost 11 months of average business activity in the Contracting business. Excluding the impact of progress with the SEA project, it was up 2.2% year-on-year.
Order intake was 8.7 billion euros in the first quarter, up 12% year-on-year, with firm growth in all three business lines, i.e. 10% in VINCI Energies, 12% at Eurovia and 14% at VINCI Construction. Orders rose 6% in France and close to 21% internationally.
VINCI said its good overall performance in the first quarter supports the previously announced outlook for 2016 as a whole:
In Concessions, despite probably weaker traffic growth, revenue at VINCI Autoroutes is likely to increase at a similar rate to that seen in 2015, taking into account the new tariff arrangements applicable from 1 February 2016.
VINCI Airports is likely to continue growing in 2016. Given the higher base for comparison, however, its growth is expected to be slower, on a comparable structure basis, than in recent years.
In Contracting, the time spread of the order books suggests stable revenue at VINCI Energies, and a likely contraction of Eurovia and VINCI Construction revenues in 2016, on a like-for-like basis.
In a market that is stabilising in France and uncertain outside France in some areas, VINCI companies will continue to prioritise improving margins ahead of volumes. This may lead to a slight decrease in overall revenue, on a like-for-like basis, but an increase in operating income and net income.
Copyright RTT News/dpa-AFX