Bouygues has raised its full-year sales forecast after it posted better-than-expected sales in the third quarter despite a weaker construction market and a telecoms price war in France.
Chief financial officer Philippe Marien said robust international demand underpinned the group's road business while a diverse range of contracts helped Bouygues cope with a challenging construction market in France.
As a result, the order book reached €27.4 billion at by the end of September, stable year on year, with international orders now accounting for 51 per cent at Bouygues Construction and Colas compared with 49 per cent a year earlier.
Bouygues says it now expects 2014 sales to be flat to 1 per cent lower versus 2013 after it posted a 1 per cent rise in quarterly revenue to €9.041 billion. In August, Bouygues forecast 2014 sales would decline by between 1 per cent and 2 per cent. It has blamed tough conditions in France, where a stagnant economy and austerity measures have weighed on public-sector construction orders and prompted telecom rivals to slash prices in a battle to retain business.
Quarterly current operating profit fell to €420 million from €531 million a year earlier, reflecting a decline in the profitability of Bouygues Telecom. – (Reuters)
