UPDATE: Sacyr Posts EUR176.8 Million 2008 Loss On Eiffage,Weak Econ
27 Fevereiro 2009 - 9:45AM
Dow Jones News
Highly indebted construction company Sacyr-Vallehermoso SA
(SYV.MC) said Friday it swung to a loss last year, pressured by a
weak economy and a loss-making sale of its 33% stake in France's
Eiffage SA (13045.FR).
Madrid-based Sacyr reported a net loss of EUR176.8 million for
2008, compared with a net profit of EUR946.4 million in 2007.
Sacyr previously consolidated results from Eiffage on its
balance sheet. It pulled out from a hostile takeover bid for
Eiffage, selling the stake at a loss.
According to the company, the failed incursion into France
resulted in an accounting loss of EUR477.3 million for 2008, since
Sacyr had to undo an earlier consolidation of profits from Eiffage
in its 2006 and 2007 earnings.
Sacyr recently agreed to sell highway operator Itinere
Infraestructuras SA (ITI.MC) to a Citigroup Inc. (C) infrastructure
fund, in a deal valued at EUR7.89 billion, including EUR5.01
billion in debt.
Sacyr, which embarked on ambitious, leveraged acquisitions when
liquidity was abundant, was forced to sell the unit as financing
costs jumped and the country's real-estate market imploded. It also
failed to launch a share offering for Itinere on waning investor
interest.
Sacyr shares lost more than 70% last year, amid concerns on its
capabilities to service debt. The company has also struggled to
sell its 20% stake in oil company Repsol YPF (REP) to cut down on
debt, which amounted to EUR14.49 billion at the end of 2008.
The company said it would soon get EUR2 billion in cash from the
Itinere sale, that it will use to pay debt.
Sacyr said revenue rose to EUR5.38 billion in 2008 from EUR5.24
billion in 2007. Earnings before interest, taxes, depreciation and
amortization fell to EUR644.2 million from EUR862.8 million a year
earlier.
Company Web site: www.gruposyv.com
-By Santiago Perez, Dow Jones Newswires; 34 91 395 8127; santiago.perez@dowjones.com (Bernd Radowitz and Christopher Bjork contributed to this article)