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UPDATE 1-Spain's FCC narrows net loss in first half
August 1, 2014 / 7:27 AM / 3 years ago

UPDATE 1-Spain's FCC narrows net loss in first half

(Adds details, background)

MADRID, Aug 1 (Reuters) - Spanish builder and services company FCC reported a narrowing in first-half losses on Friday, thanks to favourable comparisons with the year-ago period when it made big writedowns on its Austrian construction business Alpine.

FCC, like many Spanish builders, is selling off non-core assets to cut debt as it reorganises its business in the wake of a property and construction bust six years ago.

Net losses narrowed to 52.7 million euros ($70.54 million) in the first half from a 608 million euro loss in the year-ago period on 2.97 billion euros of income.

Revenues fell by 4 percent dragged lower by spending cuts on public works in Spain despite the country’s emergence from a deep recession. Adminstrations are still keeping tight budgets in order to hit the central government’s deficit targets.

FCC, which refinanced billions of euros of debt this year, said it expected revenues to grow for the whole of the year as contracts secured this year such as metro lines in Peru and Qatar started to bring in money and Spanish construction revenues stabilised.

Spain accounts for just under 60 percent of revenues at a group level. The squeeze on Spanish construction spending contributed to a 14.5 percent drop in income at this unit, the company said.

Net debt rose by 7.5 percent to 6.4 billion euros at the end of June. The figure did not reflect recent asset sales, the company said, ($1 = 0.7471 Euros) (Reporting by Sonya Dowsett. Editing by Jane Merriman)

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