Sacyr says no major realty sales cancelled in H1

MADRID: Spain's Sacyr Vallehermoso has seen no major cancellations on pre-commited housing sales in the first half of the year, the group's director for corporate development Ana Maria de Pro said on Monday. Spain is seeing the largest drop in housing sales since the last property crisis in the early 1990s, with residential housing bearing the brunt of the downturn. Sacyr is targeting 1 billion euros in housing sales in 2010 despite possible slowing growth in 2008 and into 2009.

Speaking at a conference call after the company's forcast -beating first half results, the director reiterated Sacyr's promise to increase the free float at the group's Itinere concessions business before the end of the year. The planned additional share offer at the Spanish constructor and property developer's concessions division was postponed in April due to market conditions.

Sacyr reported a 6.5 percent fall in first-half core earnings on Monday to 539.7 million euros ($791.2 million), beating a Reuters forecast for 529.2 million. EBIT (earnings before interest and tax) dropped 14 percent to 367.1 million euros, also above a Reuters forecast for 363 million euros. The company said net profit fell 3.5 percent to 415.5 million euros in the six months, higher than a Reuters survey of five analysts, which forecast, on average, a 33 percent drop in net profit to 405 million euros.

Financial costs increased 20 percent to 383 million euros in the first half, de Pro said, noting that this figure is in line with the company's expectations for financial costs for the full year 2008. Net debt fell to 19.2 billion euros at end-June from 19.726 billion at end-December and 20.2 billion euros a year earlier.

Sacyr Vallehermoso said the reduction in net debt mainly reflects the sale of its stake in French builder Eiffage in April, which reduced borrowing by 6.1 percent year on year. Sacyr's total order book increased 1.1 percent in the first half to 88.45 billion euros from a year earlier.