Bouygues dispara 10% hoje.
Bouygues to Buy Back EU1.25 Billion in Stock to Boost Yield
By Vidya Root and Francois de Beaupuy - Aug 31, 2011 6:48 AM GMT
Bouygues SA (EN), the French building, television and telecommunications company, plans to buy back 1.25 billion euros ($1.8 billion) in stock to take advantage of declines in its share price to lift earnings per share.
The buyback program, at 30 euros a share, may boost earning per share by about 11 percent if the full amount is repurchased, the Paris-based company said in a statement today. Shareholders will meet Oct. 10 to vote on the proposal.
Bouygues reported second-quarter profit that beat analysts’ estimates and raised its full-year sales target as construction markets recover. Earnings rose 2 percent to 357 million euros. Analysts in a Bloomberg survey had estimated 344 million euros.
“The financial structure of the company is ‘‘very sound,’’ with no debt repayment before 2013, and ‘‘various businesses of Bouygues are able to self-finance most of their growth,’’ Chief Financial Officer Philippe Marien said on a call. Bouygues shares yield about 7 percent, compared with a return on cash of about 1 percent, he said.
Sales, which rose 4 percent to 8.53 billion euros in the quarter, may total 32 billion euros in 2011, Bouygues said. In May, the company predicted sales of 31.9 billion euros, compared with 2010 revenue of 31.2 billion euros.
Shares of the construction company have slumped 28 percent this year, valuing the business at 8.5 billion euros.
http://www.bloomberg.com/news/2011-08-3 ... ld-1-.html