Vinci (VCISF) topped the CAC 40 in Paris Wednesday after Europe's largest construction firm reported double digit earnings growth and sounded an upbeat tone on the outlook for the year ahead.
Revenue for the year ending Dec. 31 was a little over €38 billion ($40.2 billion), the company said, down 1.2%, as weakness in elsewhere in Europe offset a stable revenue performance in France, while operating income was up 11.1% to €4.2 billion and adjusted net income was 16.2% higher at €2.37 billion.
Diluted earnings per share rose by 15.8% for the period, to €4.24, supporting a double digit increase in the full-year dividend, which was set at €2.10. The stronger performance on the bottom line was largely the result of cost containment and the board having taken the decision to spread non-cash depreciation and amortisation charges over a longer period of time.
Vinci shares rose more than 4% shortly after the opening bell in Paris to change hands at a four month high of €67.76 before paring gains to €67.72.
"The Group's overall performance in 2016 was outstanding," said CEO Xavier Huillard. "Vinci achieved strong growth in operating income and net income and maintained free cash flow at a high level."
Vinci also saw support during the period from a 3% increase in motorway traffic along the routes that it is responsible for and a 10% increase in airport passenger traffic. The group was the greatest beneficiary of a recent road infrastructure spending package unveiled by the French transport ministry, worth €800 million, with around half of the work under the program being awarded to the firm.
