Bouygues ups guidance, eyes profitability at pre-pandemic level (updated)

COLAS SA

26/08/2021 08:02

(Adds quotes, detail)
    Aug 26 (Reuters) - French conglomerate Bouygues  BOUY.PA 
raised its full-year guidance on Thursday after beating
half-year sales and core profit forecasts boosted by strong
performances in construction and telecoms.
    The family-run group now expects 2021 sales and core profit
very close to 2019 levels and its current operating margin to
return to its pre-crisis level.
    Bouygues, which makes most of its sales from construction,
suffered from the pandemic-induced slowdown in activity early
last year but quickly narrowed its losses.
    "The pandemic has not undermined [the group's] activities,
their mid- to long-term outlook is positive, and they are well
positioned," CEO Olivier Roussat said in a statement.
    In 2019, Bouygues reported a current operating profit of
1.68 billion euros ($1.98 billion) on sales of 37.93 billion. 
    This year analysts in a company-provided consensus had
expected a current operating profit of 1.57 billion euros on
sales of 36.96 billion.
    In the first half, it recorded a current operating profit of
471 million euros, topping the 403 million expected by analysts
and reversing a loss of 132 million a year earlier.
    The group pointed to the improvement in construction, with
its Colas division  COLP.PA  reporting sales of 5.59 billion
euros and a 4% rise in its backlog thanks to a resumption in
tenders in its road business.
    Separately, Colas said it would acquire Finish road and rail
construction group Destia for an undisclosed amount, aiming to
finalise the transaction by the end of the year.
    The company's fastest growing division, Bouygues Telecom,
reported a 14% rise in sales to 3.47 billion euros.
    Bouygues, with net debt at a historically low level and a
record level of available cash for a first half, also said it
would take advantage of the favourable conditions to seize new
business opportunities.
    ($1 = 0.8497 euros)



 (Reporting by Juliette Portala and Pawel Goraj; editing by
Jacqueline Wong and Jason Neely)
 ((pawel.goraj@tr.com ; +48 587 696 693 ; +48 691 300 847))