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UPDATE 3-Ferrovial makes 2010 profit, lifts dividend

Published 02/23/2011, 12:04 PM

* Net profit 2.16 bln euros vs 2.67 bln forecast by Reuters

* Announces new 2010 div, taking total to 0.42 eur/shr

* No guidance on timing for BAA stake sale

* Shares up 0.7 percent

(Adds dividend announcement, BAA update)

By Tracy Rucinski and Andres Gonzalez

MADRID, Feb 23 (Reuters) - Spanish infrastructure firm Ferrovial swung to a net profit in 2010 from a steep loss last year and announced a small dividend hike as asset sales from a drive to trim debt produced hefty one-time gains.

The Spanish toll roads operator, which also owns UK airports operator BAA, posted net profit of 2.16 billion euros ($2.96 billion) in 2010, the bulk of which came from one-time gains from the sale of 10 percent of its 407 ETR motorway in Canada.

Still, the result missed a forecast for 2.67 billion in a Reuters poll, which analysts said was mainly due to an unexpected 734 million euro provision against loss of value in its UK airports operator BAA.

At a conference call on results, Ferrovial declined to give guidance on the timing for its planned sale of a 10 percent stake in BAA, which CEO Inigo Meiras had previously slated for the first half.

The sale of the BAA stake, estimated last year to be worth about 200 million euros, is intended to put the Spanish company's holding below 50 percent, allowing it to deconsolidate BAA's debt on its balance sheet.

Ferrovial's net debt fell 11 percent to 19.8 billion euros in 2010.

Meanwhile, earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 3 percent to 2.51 billion euros in 2010 year-on-year, but beat forecasts thanks to a return to growth at its core construction division.

"Ferrovial's adjusted results came out significantly higher than expected with all the business lines showing double digit increases," Mirabaud analyst Javier Moreno said in a note to clients.

In a separate statement, Ferrovial said it planned to pay an 0.30 euro per share dividend on May 19, bringing its total for 2010 to 0.42 euros. This compares with 0.40 euros per share for 2009.

Ferrovial's shares, which have risen about 20 percent this year thanks to its drive to cut debt, were up 0.7 percent at 8.76 euros by 1615 GMT, while Spain's blue chip IBEX index was down 0.43 percent.

(Editing by Hans Peters and Jon Loades-Carter) ($1=.7299 Euro)

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