COLAS (EPA:RE) - PR Colas - 1st quarter 2018
Transparency directive : regulatory news
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Boulogne, May 17, 2018
1st QUARTER 2018
o High level of work on hand: EUR8.4 billion (+8 %)
o Revenue: +1% at constant scope and exchange rates
o Net profit attributable to the Group: -EUR218 M (-EUR195 M for 1st quarter
2017), not representative of 2018 performance
o Acquisition of the Miller McAsphalt group in Canada finalized on February 28,
2018 for a provisional price of EUR585 M
Consolidated key figures
1st quarter fiscal
In millions of euros 2018 2017 Change 2017
Consolidated revenue 1,898 1,928 - 2% (a) 11,705
of which France 1,166 1,180 - 1% 6,104
of which International 732 748 - 2% 5,601
Current operating income (302) (264) - 38 362
Operating income (302) (268)(b) -34 357
Consolidated net profit
attributable to the Group (218) (195) -23 328
Net cash / (Net debt) (732) (171) -561 433
(a) +1% at constant scope and exchange rates
(b) of which EUR4 M in non-current expenses during the 1st quarter of 2017
relating to preparatory work for the dismantling of the Dunkirk sit.
Seasonal nature of business activity
Due to the highly seasonal nature of most of the Group's businesses, it is
important to underline the fact that Colas' 1st quarter results are of little
significance, and that they are not representative of a full fiscal year. As
such, operating losses are recorded each year during the 1st quarter.
Acquisition of the Miller McAsphalt group in Canada
The acquisition of the Miller McAsphalt group was finalized on February 28,
2018, for a provisional price of EUR585 million. Goodwill of an equivalent
amount was accounted for as of March 31. The Miller McAsphalt group will be
consolidated in the 2nd quarter of 2018, retroactive to March 1.
Revenue for the 1st quarter 2018 amounted to EUR1.9 billion, down 2% compared
to 1st quarter 2017 (+1% at constant scope and exchange rates). France posted a
total of EUR1.2 billion (-1%) and the International units recorded EUR0.7
billion (-2% and +4% at constant scope and exchange rates).
Revenue totaled EUR1.5 billion, a 1% increase. In Mainland France, revenue is
up 4%, consistent with the figures of the road industry as a whole(1).
Revenue for the International units and French Overseas saw a 3% decrease.
Whereas headway is being made in Europe, revenue in North America is down,
mainly due to the exchange rate effect on the US dollar, and the other markets
are stable for the most part.
Revenue amounted to EUR0.4 billion, down 7% (-6% at constant scope and exchange
rates). 1st quarter activity was impacted by adverse weather conditions,
particularly in Networks and Waterproofing. Business was down 13% for
Networks, 8% for Railways (-7% at constant scope and exchange rates), 4%
for Waterproofing, and 3% for Safety Signaling.
(1) Routes de France - Monthly survey March 2018
Current operating income amounted to -EUR302 million, compared to -EUR264
million in the 1st quarter 2017. Roads and Specialized activities faced
particularly adverse weather conditions in Europe, with an abnormally high
amount of rainfall.
Net profit attributable to the Group amounted to -EUR218 million, compared to
-EUR195 million at the end of March 2017.
Net cash/Net debt
Net debt at March 31, 2018 amounted to EUR732 million, compared to net cash of
EUR433 million at December 31, 2017. This change is on the one hand a
reflection of the seasonal nature of Colas' business, and on the other hand a
result of the acquisition of the Miller McAsphalt group for EUR585 million.
Excluding the acquisition, net debt improved by EUR24 million compared to March
Colas intends to continue to expand in transport infrastructure solutions,
Roads and Railways, to better serve responsible mobility. The Group has the
assets, skills and financial resources needed for this growth.
At the end of March 2018, work on hand amounted to EUR8.4 billion (+8% compared
to the end of March 2017). Work on hand is up 8% at EUR3.6 billion in Mainland
France and is up 8% at EUR4.8 billion in the International units and French
In addition, Colas Rail's acquisition of Alpiq Engineering Services' railway
activities, announced on March 26, 2018, will enable it to strengthen its
expertise in catenaries, a high-added value segment, and to access new growth
Based on the foregoing and all available data, outlook for the year reported on
February 22, 2018 remains unchanged: 2018 revenue should be significantly
higher than in 2017, and the current operating income is expected to improve.
For further information:
Delphine Lombard (tel.: +33 6 60 07 76 17) /
Rémi Colin (tel.: +33 7 60 78 25 74) firstname.lastname@example.org
Jean-Paul Jorro (tel.: + 33 1 47 61 74 23) /
Zorah Chaouche (tel.: +33 1 47 61 74 36) email@example.com