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EARNINGS POLL-Ferrovial 2008 EBITDA seen down 7.82 pct

Published 02/25/2009, 10:44 AM
Updated 02/25/2009, 10:48 AM
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* Ferrovial 2008 results

* Due Friday Feb. 27, before the market open

* Core earnings (EBITDA) seen down 7.8 percent

* Focus on any update on Gatwick sale, other disposals

MADRID, Feb 25 (Reuters) - Spanish infrastructure group Ferrovial is expected to report a 7.8 percent drop in core earnings as its construction business is hit by the country's steep economic slowdown, but analysts warned comparisons would be difficult.

"Results visibility is low due to the intense capital activities and non-recurrent effects," Caja Madrid said in an investors note.

Earnings before interest, tax, depreciation and amortisation (EBITDA) for 2008 are seen at 2.81 billion euros ($3.6 billion), while revenue is expected to fall 4.32 percent to 13.99 billion, according to a Reuters poll of 11 analysts.

Ferrovial's bottom line is seen swinging to a profit of 254 million from a loss of 298 million euros due to various one-off items.

The constructor's wide-reaching business portfolio -- including British airport operator BAA, highways company Cintra and construction and services units -- will all report lower activity for 2008, analysts said.

BPI analysts expect a 15 percent decline in EBITDA and flat sales growth at Ferrovial's construction business, dragged down by the Spanish operations, which will not be offset by international growth.

"Focus should be on the current standing of the assets disposal programme, namely Gatwick airport, and an update on the UK competition commission file," BPI said.

Investors will also be looking for any update on recent comments to Reuters by Chief Executive Javier Ayuso that Ferrovial could sell part of its stake in BAA.

"Some hints about the merger with Cintra will also be relevant," ESR analysts said in a note to clients.

Ferrovial announced plans to merge with toll road firm Cintra in December.

Following are the results of the survey in simple averages of millions of euros:

2008E 2007 Percent Change Range EBITDA 2,806 3,044 -7.82% 2,605-3,082 REVENUE 13,998 14,630 -4.32% 13,601-14,630

Contributors: BPI, Fortis, Credit Suisse, Espirito Santo, Bank of America, Caja Madrid, Deustche Bank, Ahorro Corporacion, BNP Paribas, UBS, Collins Stewart ($1=.7780 Euro) (Reporting by Paul Day and Judy MacInnes; editing by Simon Jessop)

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