FCC Faces Record Loss in 2013

24/02/2014 – Expansion

 This week the final 2013 results of FCC will be made public. It is predicted that the company´s annual loss could reach €1.000 million. The group´s managing board decided upon a massive clean-up in order to begin the year 2014 with a zero account.

By September, the FCC chaired by Esther Koplowitz has registered losses of €675 million, attributed to Austrian Alpine´s deconsolidation and the impact of governmental changes on the renewable energies introduced in years 2012-2013.

During the last quarter, FCC realized that its branches: WRG in the United Kingdom or Globalvía in Spain, added to overall negative numbers. Moreover, the collective dismissal expenses (ERE in Spain) approved last year (€133 million) that let over 2.500 employees leave the construction, industrial fields and the cement producer company Portland, shall be taken into account. (…).

Due to the new provisions imposed over the renewable energy sector, 51% of a branch of the company was sold to fund Plenium Partners in a desperate deed that will probably bring more losses. (…) FCC could lose also dividend granting.

The target is set at handing over a commitment with a strategic plan drawn until 2015 in which reaching ebidta of €1.200 million, generating cash flow of €850 million and cutting in €1.900 million debt will be included. (…).

The odds are high that in the following days the deal on selling the logistics platform to Corpfin fund will be sealed. Also, Cemusa affiliate is on sale. (…) FCC aims at reducing its debt by divestment.

Another critical issue is refinancing of the €4.600 million corporative debt expiring in 2017 and almost half of it in syndicate credit has already been acquired by Santander, CaixaBank, BBVA and Bankia. The banks are supposed to come to an agreement by February 28th.

FCC´s next task will be to issue the debt. The company´s branches Aqualia and WRG will be the first to sacrifice.

 

Original article: Expansión (C. Morán)

Translation: AURA REE

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