Revenue drop at Vinci

An actual fall of more than 8% in revenues at Vinci Construction has been reported for the year up to 30 September – a fall of nearly 3% on a like-for-like basis.

Vinci, which sits on top of the CE-100 league table of European contractors, said its international revenue for the construction division had grown 0.5% like-for-like.

The Vinci group consolidated revenue for the first nine months of 2014 totalled €28.43 billion, a drop of 1.5% on a like-for-like basis compared to the same period in 2013. The actual revenue figure was down 3.7%.

Contracting revenue – including Vinci Energies, infrastructure and urban development arm Eurovia, and Vinci Construction – amounted to €23.96 billion, down 2.5% on a like-for-like basis, or 5.2% on an actual basis. Vinci said this was mainly a result of the deconsolidation of its CFE subsidiary in late 2013.

Eurovia, with revenues of €6.07 billion was down 2.3% on a like-for-like basis, 2.9% in actual terms. In France, Eurovia’s revenues amounted to €3.68 billion, down 4.2% on a like-for-like basis, a fall of 4.1% in actual terms. Vinci said traditional road maintenance activities were affected by the slowdown in public-sector orders, resulting from local elections and their impact on local authority budgets. However, it reported that the rail business continued to grow.

International revenue totalled €2.38 billion – a rise of 0.8% like-for-like, or a fall of 0.9% in actual terms as a result of adverse currency effects. Business levels grew in Canada, the Czech Republic, the UK and the US. They fell in Chile, Germany and Poland.

Eurovia’s order book at 30 September, 2014, amounted to €6.0 billion, up 4.4% since the start of the year and down 4.9% over 12 months. Vinci said that figure represented almost nine months of Eurovia’s average business activity.

Construction

Revenue figures for Vinci Construction for the year to the end of September were €11.25 billion, a decrease of 2.6% on a like-for-like basis or down 8.4% on actual terms.

In France, revenue totalled €6.35 billion, down 4.8% on a like-for-like basis or 5.0% actual. The company said this result included the combined impacts of progress on the Tours to Bordeaux high speed rail project and lower business levels at Vinci Construction France, whose markets were affected by lower volumes in the building and public works segments.

In specialist works, however, it reported that soil, structural and nuclear engineering firm Soletanche Freyssinet maintained its good momentum.

International revenue for Vinci Construction totalled €4.90 billion, up 0.5% like-for-like, but down 12.5% on an actual basis thanks mainly to the deconsolidation of CFE.

It said that in the UK, problems with several projects, mainly the Nottingham tram extension, had prompted the new management at Vinci to scale back activity. That decline was reported to have been offset by growth at Vinci Construction Grands Projets and Entrepose Contracting, while Sogea-Satom's African activities posted stable revenue.

Vinci Construction’s order book at 30 September, 2014, amounted to €16.3 billion. The company said that represented almost 13 months of Vinci Construction's average business activity.