Eiffage feeling confident

Encouraged by a growth in sales during the first quarter of 2018, helped by international operations, French-based contractor Eiffage has confirmed its outlook for the year ahead.

Total sales increased by 4.3% like-for-like to €3.4 billion. The firm’s contracting activities contributed significantly, growing by 3.1% like-for-like, from €2.59 billion in the first quarter of 2017 to €2.71 billion in the first quarter of 2018.

Within this, construction sales were up 0.4% to €799 million in the first quarter of 2018, compared to the same period in the previous year.

Although sales decreased by 4.5% to €634 million in France, they increased by 25% to €165 million in the rest of Europe, mainly in the Benelux countries. Significantly, sales in property development leapt up by 31.8%.

Looking at infrastructure, sales rose by 4.6% like-for-like, from €936 million in the first quarter of 2017 to €1.02 billion in the first quarter of this year.

The French market contributed to this with a 7.2% growth in sales to €640 million. Although poor weather conditions dampened sales in road construction, this was more than compensated for by strong increases in civil engineering and metallic construction sales.

In the rest of Europe sales fell by 9.8% to €227 million, while outside of Europe sales increased from €32 million in the first quarter of 2017 to €100 million in same period this year. This was attributed in part to maritime works activities acquired from Saipem at end of 2017.

Overall, international operations contributed €777 million in the first quarter of 2018, representing a 10.8% like-for-like increase compared to the same period in the previous year, while sales from operations in France grew by 2.6% like-for-like, comparing the first quarter of 2017 with that of 2018.

As part of a consortium, Eiffage was awarded two further lots on the Grand Paris Express project – lot one for line 16 and the extension of the southern section of line 14, in ther first quarter of 2018. For Eiffage, these amounted to a value of almost €1.9 billion.

The company’s contracting order book increased to €14.1 billion, up 23% year-on-year.

In light of these favourable dynamics, Eiffage has confirmed its guidance for 2018.