FCC ups 2006 forecasts, sees European buys

FCC ups 2006 forecasts, sees European buys
Published: 30 June 2006

Spanish construction and services group FCC wants to accelerate its growth through acquisitions and is looking at various opportunities in Europe where it could replicate its business model.

"We’ve got various operations on the go at different stages," FCC Chief Executive Rafael Montes told reporters ahead of the group’s shareholders meeting on Thursday.

"Our objective is Europe ... and we’re working on things including the UK, Czech Republic, Austria and Germany."

Montes would not be drawn on whether FCC was interested in buying Austria’s third largest construction firm Alpine Mayreder Bau as reported in an Austrian newspaper which said FCC could pay as much 500 million euros.

The Austrian firm says there has been no deal. Montes would only say that Austria forms part of FCC’s growth plans.

FCC has already expanded into environmental services in Austria and water in the Czech Republic this year and now wants to develop in its other strategic areas – construction and cement.

Earlier, FCC raised its full-year net profit growth forecast to more than 20 percent on Thursday, up from a previous forecast of 18-20 percent growth.

Montes also said he expected sales volume to grow more than 15 percent and EBITDA  to rise nearly 20 percent.

Fomento de Construcciones y Contratas had previously forecast sales growth of 12 percent with EBITDA adding more than 12 percent. In the first quarter, FCC’s net profit rose more than 40 percent but Montes said it would not keep up that level of growth.