- Order intake rises 8% driven by the international market, reaching €1.66 bn
- The 9% increase in international sales offsets the decline in the Spanish market
- Recurring net profit is up 3% but, after including one-off expenses, shrinks 6%
At the end of the first half, Indra has been able to confirm its sales growth targets, recurring operating margin and raises its order intake target for 2010.
Indra’s performance to 30 June has been in line with the company's forecasts, bearing in mind the very difficult and complex macroeconomic and sector environment. For Indra, the international market continues to be the main growth driver, while the Spanish market remains very sluggish. During the first half of the year, major multiannual projects were won which strengthened the company's order backlog.
Order intake grows more than forecast
Order intake continued to grow briskly, advancing 8% to total €1.66 bn. The company has therefore raised its order intake growth target to around 7%, which is 2% higher than the target announced at the beginning of the year.
Revenues totalled €1.33 bn, practically the same level (-0.4%) as the first half of the previous year. In the international market revenues rose 9%, mainly driven by Latin America, while the domestic market shrank 5%. In terms of sectors, there was a notable increase in transport and traffic (10%) and telecoms and media (9%), and a fall in security and defence (-12%).
During the first half of the year, net profit totalled €101 m, 3% more than the year ago figure, separating one-off and non-recurring expenses, but 6% lower after considering these one-offs. The recurring EBIT margin (before one-off expenses) was 11%.
The order backlog reached €2.92 bn, 12% more than the first half of 2009, and 1.2x times revenues for the last 12 months. Considering first half-year revenue and the volume of orders that can be executed until the end of the year, revenue coverage stands at 92% for 2010, on a par with last year.
Confirmation of 2010 targets
Indra expects sales to improve during the second half of the year, particularly in the domestic market. International markets will continue to perform very positively in terms of order intake and sales, mainly in Latin America and developing countries. Indra is involved in major projects currently in the award phase and which should be clarified during the rest of the year.
The year's forecasts take into account that:
- Order intake will continue to progress favourably, ending the year with minimum growth of 7%, above the 5% level announced at the beginning of the year.
- Revenues will increase at a rate of 5% during the second half of the year, therefore achieving 2% growth over the whole year.
- The recurring EBIT margin (before non-recurring one-off expenses) will improve in the second half of the year, closing the year at around 11.4%.
Dividend payment
On 5 July, the company paid an ordinary dividend for 2009 of €0.66 per share (gross), representing an 8% increase on that paid for 2008 and equating to a 55% pay-out (in line with previous years).
KEY FIGURES
The following table lists the key figures for the period:
|
INDRA
|
1H10 (M€)
|
1H09 (M€)
|
Change (%)
|
|
Order intake
|
1,663.2
|
1,542.2
|
8
|
|
Revenues
|
1,328.6
|
1.333,4
|
(0)
|
|
Order backlog
|
2,919.0
|
2,606.8
|
12
|
|
EBIT (before one-off expenses)
|
145.7
|
151.6
|
(4)
|
|
EBIT margin (before one-off expenses)
|
11.0%
|
11.4%
|
-
|
|
EBIT
|
133.9
|
151.6
|
(12)
|
|
EBIT margin
|
10.1%
|
11.4%
|
-
|
|
Recurring net profit
|
110.5
|
107.7
|
3
|
|
Net profit
|
101.1
|
107.7
|
(6)
|
|
Net debt
|
221.8
|
211.6
|
5
|