Get 40% Off
🚀 Our AI Picked 6 Stocks that Jumped +25% in Q1. Which Picks Will Soar in Q2?Unlock full list

ACS reports 20% rise in net profit as sales grow in US

Published 13/11/2023, 18:16
Updated 13/11/2023, 19:15
© Reuters. FILE PHOTO: The logo of Spanish construction conglomerate ACS is displayed atop the company's building in Madrid, Spain, February 10, 2023. REUTERS/Violeta Santos Moura/File Photo

MADRID (Reuters) -Spanish builder ACS posted a nine-month net profit of 576 million euros ($616.2 million) on Monday, a 20% rise from last year and topping market expectations, as it expanded projects in the United States and benefited from toll-road unit Abertis.

Analysts on average expected net profit to jump 15% to 552.67 million euros from the 480 million euros reported in the same period in 2022, according to LSEG estimates. They had forecast a slight adverse impact on earnings due to currency exchange rates of both the U.S. dollar and the Australian dollar.

The company's sales rose 7.6% to 26.3 billion euros, it said.

On the back of strong results from construction activities, the company is evaluating a sale of its services unit Clece, which operates mainly in Spain, ACS Group CEO Juan Santamaria said, following a report published by local business newspaper Expansion on Monday.

"It is true. ... We are looking at different possibilities and different options in the market," said Santamaria during a call with analysts after results were released. "We are in the early stages. ... We have not made a final decision," he added.

ACS's construction businesses generated 309 million euros in profit between January and September, up 21.5% from the same period in 2022. The concessions unit earned 173 million euros, mostly contributed by Abertis, whose net profit grew 35% compared with last year.

Services division Clece booked net profits of 22 million euros, 4.6% more than the previous year.

The Spanish builder's activities are mainly concentrated in the U.S., Australia, Spain and Canada. ACS shares closed up 1.6% at 33.78 euros on Monday in Madrid.

Last month, Abertis, in which ACS holds a 50% stake, announced it had won a tender in Puerto Rico to operate and maintain four new toll roads over the next 40 years.

ACS said traffic in motorways exceeded pre-pandemic levels in almost all countries in which Abertis operates.

The chairman of Hochtief, in which ACS holds a 73% stake, said last week the group was also winning projects related to the energy transition, new mobility options and digitalisation, boosting sales and profit.

ACS's construction activities in North America accounted for 66% of total construction revenue, with sales up 7% compared with 2022, after the company won projects to build new airport terminals, stadiums and highways, mainly in the U.S.

© Reuters. FILE PHOTO: The logo of Spanish construction conglomerate ACS is displayed atop the company's building in Madrid, Spain, February 10, 2023. REUTERS/Violeta Santos Moura/File Photo

Group sales in the Asia-Pacific region accounted for 23% of total construction revenue.

($1 = 0.9348 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.