Infrastructure Projects

Total revenue from infrastructure projects was $4.249 billion pesos at the close of 2011, a 16.2% increase. Operating profit and EBITDA were $362 and $394 million pesos, increases of 35.1% and 32.1%, respectively.

 

Improved operating performance was attributed to the conclusion or final phase of projects such as: the Línea 12 of the Mexico City subway, the expansion of the Tenango-Ixtapan de la Sal toll highway, the Culiacan highway and the second Toluca by-pass road. As of December 31, there were important advances in the Culiacan highway, the Tunel Emisor Oriente, the Atotonilco wastewater treatment plant, the El Realito dam and the construction of several mining projects such as San Felipe, Concheño and El Porvenir.

 

Duct Installation

The duct installation division reported revenue of $4.039 billion pesos, a large increase of 35.6% for 2011. Operating profit was $440 million de pesos, a 55.1% increase from the prior year. Likewise, EBITDA was $486 million pesos, an increase of 49.8%.

The improvement in business volume and profitability in this division is mainly explained by growth in foreign and domestic operations in the telecommunications industry.  Also, the additional revenue from the operations of the Conejos-Medanos aqueduct in Ciudad Juarez and the construction of natural gas networks in Mexico City. It’s worth mentioning that the Cactus-Samaria gas duct in Villahermosa, as well as the installation of cameras as part of the Ciudad Segura project in Mexico City, were completed this year.

 

Civil Construction

This division reported annual revenue of $2.483 billion pesos in 2011, growth of 33.4% compared to 2010. Operating profit and EBITDA also improved to $126 and $135 billion pesos, increases of 11.9% and 11.4%, respectively.

 

The dynamics of the revenue and operating profit growth were due to the following projects, some of which were concluded this year: Plaza Mariana in Mexico City, the stations of the Línea 12 of the Mexico City subway, the Operations Center of the Policía Federal Preventiva (PFP), the Huimanguillo Penitentiary in Tabasco,

the Ciudad Segura C-4 building, shopping malls in Villahermosa and San Luis Potosi and two Star Medica hospitals in Queretaro and Chihuahua. Meanwhile, projects continue with Plaza Carso, the urbanization project in Veracruz, the El Rosario subway station and the Terminal Azteca Poniente.

 

Housing Division

Accumulated revenue in the housing division for 2011 was $446 million pesos, a 41.0% decrease compared to the same period in the prior year. Operating profit and EBITDA decreased 101.3% and 67.0%, respectively. Despite changes in operating plans and an operating restructuring, the fall in business volume continued due to the decrease in projects in the north of the country.

 

 

 

 

 

 

Sincerely,

 

José Humberto

Gutiérrez-Olvera Zubizarreta

Chief Executive Officer