Colas: revises outlook for 2018

(CercleFinance.com) - On Thursday night Colas announced that it expects underlying operating income for the first nine months of 2018 to fall around 25 million euros compared to the same period in 2017.


However, full-year 2018 sales are expected to be significantly higher than in 2017, largely due to the contribution from Miller McAsphalt. Its underlying operating margin is expected to be stable or slightly lower than in 2017, whilst an improvement was previously expected.

Colas Rail is facing a difficult situation in France, which has deteriorated - first in the second and then the third quarter of 2018. Strikes at the SNCF had a negative impact on rail works and also on freight (...). Furthermore, at Spac, the fitting of a pipeline in southwestern France, which was hit by bad weather in the first quarter of 2018, has only managed to get back on schedule with significant extra costs. Over the first nine months of 2018, difficulties at Colas Rail and Spac have only been partly offset by the solid results of the group's road business in mainland France, the group said.



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