UPDATE 1-Vinci says sales, net profit to rise in 2011
Tue Mar 1, 2011 1:36pm EST
* Sees at least 5 pct sales growth vs 8.6 pct in 2010
* Net profit rise seen close to that of sales in 2011
* Proposes 2010 dividend of 1.67 eur/shr
(Adds detail, background)
PARIS, March 1 (Reuters) - French construction group Vinci (SGEF.PA) is aiming for 2011 sales growth of at least 5 percent and a net profit rise close to that, helped by higher motorway traffic, acquisitions and growth in its concessions business.
Net profit rose 11 percent to 1.78 billion euros ($2.46 billion) last year, the world's largest construction and concessions group said in a statement on Tuesday.
This was led by 12 percent growth at its concessions division, which includes Vinci motorways and car parks.
Vinci said margins would improve at its concessions business this year and stay at the current level at its contracting division.
Motorway concessions should see sales rise 4 percent, helped by a moderate increase in traffic, the full opening of a double-deck tunnel on the A86 ringroad around Paris and toll increases, Vinci said.
"Contracting businesses ... should benefit in 2011 from the full-year operation of acquisitions made in 2010, the start-up of works on recently won major concession projects and an improvement in the construction and energy markets, particularly in France," Vinci said.
More profitable concession contracts and emerging markets have helped Vinci and other European builders weather a construction downturn as infrastructure stimulus packages have wound down.
Its contracting business, which includes construction, was boosted by acquisitions.
Vinci's rival Bouygues (BOUY.PA), which also reported earnings on Tuesday, said it expected sales at its construction business to rise 2 percent this year after slipping 3 percent in 2010 to 9.24 billion euros. The division suffered a net profit drop of 16 percent last year.
Bouygues generates around 30 percent of sales from its construction division. It also has TV, telecom and property businesses. ($1=.7234 Euro) (Reporting by James Regan; Editing by Blaise Robinson and Jane Merriman)
http://www.reuters.com/article/2011/03/ ... H120110301