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France: Bouygues raises full-year guidance after 16 percent increase in 1H net profit

France: Bouygues raises full-year guidance after 16 percent increase in 1H net profit

French building-to-broadcasting conglomerate Bouygues SA raised its full-year sales target on Friday after reporting a 16 percent rise in first-half net profit.
Net profit beat analyst expectations at euro655 million (US$891 million), compared with euro565 million a year earlier.
The increase was led a "sharp" rise in profit at its road-building division, Colas. Results were also boosted by a euro64 million (US$87 million) contribution from Alstom SA, the power and transport engineering company in which Bouygues has a 25.3 percent stake.
Chief Executive Martin Bouygues repeated his interest in buying a stake in Areva Group while speaking at a news conference.
Alstom's Chairman Patrick Kron has said the French engineering company would consider an industrial tie-up with Areva if the French government decides to go ahead with a delayed partial privatization.
Bouygues, which owns France's No. 3 mobile-phone operator, Bouygues Telecom, and is the main shareholder in the country's leading private-TV broadcaster TF1, raised its 2007 sales target to euro29 billion (US$39.47 billion) from the euro28.8 billion (US$39.2 billion) goal announced June 6.
On Aug. 9, Bouygues reported a 10 percent increase in first-half sales of euro13.3 billion (US$18.1 billion).
"Bouygues reported first-half 2007 results well ahead of consensus, with Colas giving the mean beat," Bear Stearns analyst Maurice Patrick said in a research note.
"With an attractive valuation and strong earnings momentum, we reiterate our outperform rating."
Operating profit rose 22 percent to euro1.06 billion (US$1.44 billion) from euro862 million a year earlier.
Net profit at Colas rose to euro113 million (US$153 million) from euro68 million with "brisk" business in France and overseas, despite adverse weather conditions in France in the second quarter.
The contribution to net profit from the telecom division fell to euro259 million (US$352 million) from euro273 million, as it no longer booked profit from its divested Bouygues Telecom Caraibe unit. On a like-for-like basis, net profit would have risen 48 percent, Bouygues said.
Bouygues shares were down 0.1 percent at euro57.03 (US$77.62) in Paris.


Updated : 2021-07-26 10:15 GMT+08:00