COLAS (EPA:RE) - Press Release COLAS Half-Year Results 2018

Transparency directive : regulatory news

30/08/2018 07:35

PRESS RELEASE

Boulogne, August 30, 2018

                             HALF-YEAR RESULTS 2018

* Work-on-hand: EUR 9.5 billion, up 21% at constant exchange rates (+11%
  excluding Miller McAsphalt)

* Revenue: EUR5.4 billion, up 7% (+4% at constant scope and exchange rates)

* Following a EUR38 million decline in the 1st quarter, current operating
  income for the 2nd quarter is stable

* Net profit attributable to the Group: -EUR130 M (vs -EUR88 M at June 30,
  2017)

The Board of Directors of Colas, chaired by Mr. Hervé Le Bouc, met on August
28, 2018 to examine the half-year results at June 30, 2018 and outlook for the
current year.

Consolidated key figures

                                 1st half year
in millions of euros           2017         2018         Change

Consolidated revenue         5,002         5,361           +7%
Of which France              2,812         2,855           +2%
Of which International       2,190         2,506          +14%
Current operating income      (136)         (174)          -38
Operating income              (140) (a)     (174)          -34
Consolidated net profit
attributable to the Group      (88)         (130)          -42
Net cash surplus / (Net debt) (570)       (1,314)         -744

(a) including EUR4 M in non-current expenses during the first half 2017
pertaining to pre-decommissioning work at the Dunkirk site.

Note: Seasonal nature of business at Colas

Given the highly seasonal nature of the majority of Colas' businesses, it is
important to underline the fact that the Group's half-year results are not
representative of its full-year performance. The acquisition of Miller
McAsphalt further reinforces the seasonal nature of the Group's business,
posting half-year revenue(1) of EUR243 million along with a neutral
contribution to current operating income.

1st half-year revenue 2018 is up 7%

Revenue for the first half of 2018 amounted to EUR5.4 billion, up 7% compared
to 2017 (+4% at constant scope and exchange rates). The situation is contrasted
between the Roads segment, which is up 11%, and the Specialized activities
segment, which recorded a 7% drop.

Roads:

In the first half, revenue from the Roads segment amounted to EUR4.4 billion,
up 11% compared to 2017 (+7% at constant scope and exchange rates):

* revenue in Mainland France rose by 5% compared to the first half of 2017. All
  six regional subsidiaries contributed to this increase, in line with market
  growth;

* revenue in Europe increased by 12% (+14% at constant scope and exchange
  rates). Growth remains strong, both in the British Isles and Continental
  Europe, especially in central Europe;

* revenue in North America was up 24% (+3% at constant scope and exchange
  rates), mostly in Canada due to the contribution of Miller McAsphalt;

* in the Rest of the World (International units, excluding Europe and North
  America), revenue was up 8% (+12% at constant scope and exchange rates).
  Growth was strong in Oceania (+17% at constant scope and exchange rates),
  boosted by Australia.

Specialized Activities:

In the first half of 2018, revenue from the Specialized Activities segment
totaled EUR903 million, down 7% compared to the first half of 2017 (-7% at
constant scope and exchange rates). This drop is mainly attributable to
Networks (-16%) and Railways (-9%), the latter being impacted by a decline in
business in France, a consequence of the situation at the French national rail
company, SNCF.

(1) as of March 2018; the contribution for March to June is posted in the 2nd
quarter.

Profitability

Current operating income in the first half of the year amounted to -EUR174
million, compared to -EUR136 million in the first half of 2017, down EUR38
million.

Current operating income remained stable in the second quarter at EUR128
million:

* it benefitted from a rising contribution from the Roads segment, after a
  first quarter impacted by severe weather in most areas,

* on the other hand, it was negatively impacted by difficulties in the Railway
  business in France, in the wake of a decline in business, mainly due to the
  situation at the French national rail company, SNCF.

Income from associates and joint ventures totaled EUR17 million compared to
EUR33 million at the end of June 2017, due to a smaller contribution from Tipco
Asphalt, which experienced a slowdown in business.

Net income attributable to the Group amounted to -EUR130 million in the first
half of 2018, compared to -EUR88 million in the first half of 2017.

Net debt

Net financial debt as of June 30, 2018 totaled EUR1,314 million, compared to
net financial debt of EUR570 million at the end of June 2017. The change from
December 31, 2017 (net financial surplus of EUR433 million) includes the
acquisition of the Miller McAsphalt Group in Canada, in addition to the impact
of the usual seasonal nature of businesses.

Work on hand

Work on hand at the end of June 2018 amounted to EUR9.5 billion, up 18% from
the end of June 2017. These figures include EUR0.8 billion pertaining to Miller
McAsphalt. At constant exchange rates, work on hand was up 21% (+11% excluding
Miller McAsphalt). Work on hand for Mainland France is up 8% while work on hand
for the international and overseas units is up 25%.

Outlook

2018 revenue is expected to be significantly higher than in 2017, due in
particular to Miller McAsphalt's contribution.

Current operating profit margin is expected to improve, subject to the usual
weather conditions and the availability of raw materials.

The financial statements are available at www.colas.com.
The half-year financial report is available at www.colas.com.
The financial statements were subject to a limited review by the Statutory
Auditors, who have published a report thereof.

Colas (www.colas.com)
Colas, a subsidiary of the Bouygues Group, is a world leader aiming to promote
transport infrastructure solutions for sustainable mobility. With 55,000
employees in more than 50 countries on five continents, the Group performs some
80,000 road construction and maintenance projects each year via 800
construction business units and 2,000 material production units.
In 2017, consolidated revenue at Colas totaled 11.7 billion euros (48% outside
of France). Net profit attributable to the Group amounted to 328 million euros.

                           For further information:
                  Delphine Lombard (tel.: 33 6 60 07 76 17) /
          Rémi Colin (tel.: 33 7 60 78 25 74) contact-presse@colas.fr
                  Jean-Paul Jorro (tel.: 33 1 47 61 74 23) /
      Zorah Chaouche (tel.: 33 1 47 61 74 36) contact-investors@colas.fr

Condensed consolidated income statement for second quarter 2018

                                                              Change
                                         2nd quarter        2nd quarter
in millions of euros                  2017         2018      2018/2017

Revenue                              3,074        3,463        +13%
Current operating profit               128          128          0
Non-current expenses                     0            0          0
Operating profit                       128          128          0
Net profit attributable to the Group   107           88        -19

First-half 2018 revenue by business segment

                                                                  Change at
                                                                  constant
                                                       Change     scope and
                                 1st half year        1st half    exchange
in millions of euros           2017         2018      2018/2017     rates

Roads Mainland France         1,954        2,060        +5%         +5%
Roads Europe                    669          749       +12%        +14%
Roads North America             814        1,009       +24%         +3%
Roads Rest of the World         583          629        +8%        +12%
Total Roads                   4,020        4,447       +11%         +7%
Specialized Activities          976          903        -7%         -7%
Parent company                    6           11        ns          ns
TOTAL                         5,002        5,361        +7%         +4%

COLAS's latest news

06/11/2023 17:45

COLAS (EPA:RE) - Press Release COLAS Half-Year Results 2018

Transparency directive : regulatory news

COLAS's latest news

Other stories