FCC Increased EBITDA by 3.4% to 613.3 million euro in the first nine months of 2016

Madrid, 26 October 2016. The FCC Group reported 613.3 million euro in EBITDA in the first nine months of 2016, a 3.4% increase. The EBITDA margin increased to 14%, from 12% in the same period of 2015. 

EBIT was negative in the amount of €44.4 million in the first nine months of 2016, contrasting with €273.9 million in the same period of 2015. This change is attributable to a 299.9 million euro impairment in the Cement division because of the delay in the expected recovery in demand, particularly in Spain, as a result of the unexpected cutback in public expenditure in the period.

Even though net financial expenses were cut by 22.4% in the period, earnings before taxes were negative in the amount of 182.8 million euro, basically because of the aforementioned impairment of goodwill.

Consolidated group revenues declined by 8.6% in the first nine months to 4,380 million euro, mainly as a result of the steady decline in Construction in Spain, where revenues fell by 36.4% in the first nine months, and also of sterling's depreciation.

The increase in profitability in the Environment and Water businesses was maintained, with margins of 15.5% and 22.8%, respectively; together, these areas accounted for 84.1% of the backlog at 30 September, which provides a high level of visibility and strengthens the prospects for the Group as a whole.

Operating and structural expenses declined by 13.2% year-on-year, enhancing operating profitability.

Gross interest-bearing debt at 30 September 2016 was 1,609.8 million euro lower than at 2015 year-end.