COLAS (EPA:RE) - Colas adjusts outlook on operating margin for 2018
Transparency directive : regulatory news
18/10/2018 17:45
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PRESS RELEASE
Paris, October 18, 2018
COLAS ADJUSTS OUTLOOK ON OPERATING MARGIN FOR 2018
On August 30, 2018, in a press release detailing the 2018 first half-year
results, Colas reported difficulties in its railway segment.
Colas Rail is dealing with a difficult situation in France, which worsened in
the second and third quarters of 2018. Strikes at the French national railway
operator SNCF had a negative impact on railway works as well as on freight,
causing a sharp drop in business in a sector known for its high fixed costs.
Furthermore, at Spac, a pipeline project in southwestern France was impacted by
poor weather in the first quarter of 2018. The company was obliged to roll out
significant additional resources to make up for lost time, which led to extra
costs.
Over the first nine months of the year, the difficulties encountered by Colas
Rail and Spac have only been partially offset by the good results recorded by
the road segment in mainland France.
As a result, Colas' current operating income over the first nine months of 2018
is expected to decrease by approximately EUR25 million compared to the first
nine months of 2017.
For full year 2018:
- revenue should be significantly higher than in 2017, in particular because of
Miller McAsphalt's contribution;
- current operating margin is now expected to remain stable or decrease
slightly from 2017, compared to a forecast improvement.
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:
Mr. Jean-Paul Jorro (tel.: +33 1 47 61 74 23) / Ms. Zorah Chaouche
(tel.: +33 1 47 61 74 36) contact-investors@colas.fr
Ms. Delphine Lombard (tel.: +33 6 60 07 76 17) / Mr. Rémi Colin
(tel.: +33 7 60 78 25 74) contact-presse@colas.fr