Infrastructure
and Construction
DIVISION
Carso Infraestructura y Construcción
The annual sales of Carso Infraestructura y Construcción decreased 9.8%, amounting to $17,273 million during 2017. This was explained mainly by fewer bids submitted on infrastructure projects and those related to the oil industry; as well as the completion of major projects, both for infrastructure and for civil construction, where the replacement of new construction projects was carried out in association with other corporations and do not consolidate, and are not reflected in the results for this division. This is the case, for example, of Landing Strip 3 and the Terminal building for the new Mexico International Airport.
$1,636
million pesos in controlling net income
Regarding operating income and EBITDA, these items recorded a decrease of 9.8% and 8.5% during the year, while margins were maintained at 12.4% and 15.6%, respectively. This was due to the recovery of earnings in two projects, having already recognized its costs.
At the level of the controlling income, it went from $1,245 million in 2016 to $1,636 million in 2017, thus representing an improvement of 31.4%, which is explained by the recovery of income as mentioned in the preceding paragraph.
The project mix at the close of 2017 included the Emisor Oriente Tunnel, the Mitla-Tehuantepec road, the Cuatro Caminos ETRAM, the real estate development known as Nuevo Veracruz, Telecom facility services and the construction of the Samalayuca-Sásabe gas duct. In the non-consolidated projects, there are the works for the Landing Strip 3 and the terminal building for the new Mexico International Airport.
The Carso Infraestructura y Construcción backlog amounted to $12,430 million as at December 31, 2017, compared to $16,221 million in 2016. This figure does not include $14,168 million corresponding to projects developed jointly with third parties, with which the backlog would be $26,598 million.
Capital Expenditures carried out by Carso Infraestructura y Construcción during 2016 were $67.4 million.
* Amount of outstanding works for construction excluding projects in association with other companies.