Europe Top Contractors CE-100 2007

8/9/2019 Europe Top Contractors CE-100 2007

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Ce100

www.kh.c copyright 2008

europes largesT

ConsTruCTion Companies


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N E W S R E P O R T

EUROPES TWO LARGEST

contractors Vinci and Bouygues have retained their places at thetop of this years CE-100 leaguetable. Below them there have been afew changes, with Skanska slippingdown two places to be overtaken byHochtief and ACS.

There are some new names in

the top 10 this year, with Starbagclimbing up from no. 21 last yearto no. 8 this year thanks to itsacquisition of parts of Walter Bau.FCC is also new to the top 10,due in part to the boost from itsacquisition of a majority stake inAlpine Mayreder.

These two new additions to the top10 of course mean two companieshave left this elite group. Last yearssixth-placed company was BovisLend Lease, which is not included inthis years ranking due its financial

results being fully integrated intothat of Australian parent Lend Lease,making it impossible to rank underCEs methodology.

Amec, which was ranked at no.10 last year, has dropped nineplaces due to its divestment of Spie.With further sales this year, as thecompany bids to reposition itself inthe energy sector, Amec is sure todrop further in next years CE-100ranking.

M A J O R M O V E R S

Further down the CE-100, majormovers include Implenia, formedfrom the merger of Switzerlands twolargest contractors Zschokke Holdingand Batigroup Holding. Similarly,Van Oord has moved up 23 placesfollowing its acquisition of Ballast

Ham Dredging in 2005. This yearsCE-100 is based on 2006 financialresults, so this year is the first thatthe full effect of this merger can beseen in the rankings.

One significant name missing fromthis years listing is UK contractorJarvis, which was ranked no. 54 lastyear (and no. 39 in the 2005 edition).

It has plummeted 49 places in thisyears ranking to be placed outsidethe CE-100 at no. 103. The companyhas undergone a major restructuringover the last two years, which hasseen it seel-0off its loss makingbusinesses to be more profitable, butmuch smaller.

N E X T Y E A R

The merger of Taylor Woodrow andWimpey could create a companylarge enough to make it into thetop 10, although it will probably

be the 2009 edition of the CE-100before the full effects are seen. Thesame can be said of Morgan Sindallsacquisition of parts of Amec.

By the same argument, the variousdeals done by Spains contractorsover the last few years mostnotably Ferrovials purchase of BAA will be more visible next year, aswill Balfour Beattys acquisition ofCentex.

Potentially more dramatic, but atthe moment a much more remotepossibility is the merger between

Sacyr and Eiffage. It is interesting toreflect that if Sacyr does succeed inacquiring Eiffage it would make itinto the top five of the CE-100 onthe basis this year's revenues. Atthe moment though there is strongFrench resistence to the deal. ce

THE CE-100 LEAGUE TABLE

Sales Company Country 2005 Change( million) Rank

1 25634 Vinci France 1 -2 18970 Bouygues Construction France 2 -

Divisions

3 15508 Hochtief Germany 4 14 14806 ACS Spain 5 15 12838 Skanska Sweden 3 -26 12371 Ferrovial Spain 7 17 10708 Eiffage France 8 18 10385 Strabag Germany 21 139 9534 FCC Spain 12 310 8646 Bam Group The Netherlands 9 -111 8581 Balfour Beatty UK 11 -12 7709 Bilfinger Berger Germany 13 113 7517 Saipem Italy 14 114 6927 Technip France 15 115 6818 Acciona Spain 18 316 6092 Aker Kvaerner Norway 19 317 6043 NCC Group Sweden 16 -118 5238 Taylor Woodrow UK 17 -119 4735 Amec UK 10 -920 4685 Sacyr Vallehermoso Spain 22 2

21 4615 George Wimpey UK 20 -122 4607 Persimmon UK 25 323 4494 Carillion UK 26 324 4488 VolkerWessels The Netherlands 23 -125 3842 Laing ORourke UK 27 226 3565 Barratt Developments UK 24 -227 3474 Enka Insaat Turkey 35 828 3448 Obrascon Huarte Lain Spain 34 629 3284 YIT Corporation Finland 28 -130 3279 Peab Sweden 31 131 3060 Cegelec* France 29 -232 3000 Spie France 32 -33 2953 Heijmans The Netherlands 30 -334 2631 Impregilo Group Italy 33 -1

35 2615 Kier Group UK 36 136 2559 Ed Zblin Germany 48 1237 2225 Technical Olympic Group Greece 37 -38 2195 Morgan Sindall UK 39 139 2065 Interserve UK 46 740 2003 TBI Holdings BV The Netherlands 40 -41 1980 Veidekke Norway 42 142 1970 Porr Group Austria 41 -143 1941 Isolux Corsan Spain 50 744 1818 Bellway UK 45 145 1796 Lemminkinen Finland 47 246 1760 Miller Group UK 53 747 1647 Alfred McAlpine UK 49 248 1516 Van Oord ACZ The Netherlands 71 23

49 1486 Implenia AG Switzerland 64 1550 1486 MT Hojgaard Denmark 59 951 1483 Petrofac UK 56 552 1449 Babcock International UK 61 953 1398 Mota-Engil Portugal 51 -254 1354 Boskalis Westminster The Netherlands 57 3

Europes topThe last few years corporateacquisitions and disposals arestarting to change the CE-100, our

league table of Europes largestcontractors. It would seem these

changes have been for the better,with profitability improving sharply.

C H R I S S L E I G H T reports.


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55 1349 Keller Group UK 62 756 1346 Berkeley Group UK 44 -1257 1310 Ballast Nedam The Netherlands 55 -258 1305 JM Sweden 63 559 1283 Kaufman & Broad France 66 760 1265 Wates Group UK 75 1561 1249 Galliford Try UK 65 462 1235 Tecnicas Reunidas Spain - NEW63 1233 Arcadis The Netherlands 72 964 1212 Compagnie Belgium 70 6

DEntreprises CFE SA

65 1200 John Sisk & Son Ireland 52 -1366 1191 Jan De Nul Belgium 82 1667 1129 Redrow UK 58 -968 1115 DEME* Belgium 79 1169 1114 Swietelsky Austria 84 15

Baugessellschaft

70 1097 Costain Group UK 60 -1071 1072 Astaldi Italy 69 -272 1041 Dura Vermeer The Netherlands 67 -573 1034 Bowmer & Kirkland UK 77 474 1013 Crest Nicholson UK 68 -675 1010 Max Boegl Germany 76 1

76 1002 ROK UK 81 577 980 Bauer Aktiengesellschaft Germany 85 878 974 Besix Belgium 88 1079 955 Strukton Groep The Netherlands 80 180 918 Techint Engineering Italy 73 -7

& Construction

81 880 Koop Holding* The Netherlands 83 282 833 Teixeira Duarte Portugal 90 883 820 SADE* France 87 484 781 Budimex SA Poland 91 785 775 E Pihl & Son AS Denmark 99 1486 767 Metrostav AS Czech Republic 89 387 750 Joannou & Cyprus - NEW

Paraskevaides (J&P)*

88 732 Tecnimont Italy 113 2589 721 N G Bailey UK 96 790 718 Hellenic Technodomiki Greece 97 791 645 AF Gruppen Norway 101 1092 642 Trevi SpA Italy 106 1493 638 Polimex - Mostostal Siedlce Poland 112 1994 630 McInerney Holdings Ireland 108 1495 574 Soares Da Costa Portugal 98 396 554 Fayat Group France 110 1497 550 Goldbeckbau Germany 107 1098 537 Shepherd UK 103 599 535 May Gurney UK 100 1100 534 Emcor UK UK 74 -26* - CE Estimate

contractorsTHE CE-100 LEAGUE TABLE Profits leapTOTAL SALES FOR THE CE-100 COMPANIES CAME TO

334 billion last year, up +12% on the 2006 total of 297 billion. Itwas a second year of double-digit growth for the top 100, reflectingbuoyancy in the industry compared to the earlier part of the decade.

But much more significant this year was the sharp increase inprofitability of the top 100 companies. The average operating margin inthe sector increase more than one percentage point from 5,75% in 2005to 6,92% in 2006. This was the best profitability has been in the sectorthis decade.

Construction output in Europe is put by Euroconstruct at about 1400 billion, so the 334 billion sales of the top 100 would equateto about a 24% share. FIEC estimates the industrys output to be lowerat 1065 billion, so the CE-100s share by this estimate would be about31%. However, both estimates are likely to overstate the CE-100s sharebecause of the fact that some companies listed have activities outsideEurope.

On a bigger scale, economic forecasting company Global Insight putsthe worlds construction output at about US$ 4000 ( 5480 billion), sothe CE-100s share would be a little over 6%.

But whatever their share might be, it is clear the CE-100 is gainingground. The annual revenues increase of +12% is well ahead of the

+3,7% rise in European construction output Euroconstruct saw in2006, and indeed ahead of Global Insights figure of +3,1% for worldconstruction growth. This clearly indicates that the large companies thatmake up the CE-100 increased their market share last year.

The average headcount of the 92 companies that report staffing levelswas 17254 people last year, a +23% increase on the previous figure of13999. This implies total employment of 1,7 million people among theCE-100 companies. According to FIEC, some 13,4 million people workin the European construction sector, which suggests that the CE-100accounts for about 13% of the industrys workforce.

2000 2001 2002 2003 2005

Sales ( Billion) Operating Margin2004

350

300

250

200

150

100

50

0

10%

9%

8%

7%

6%

5%

4%

3%

2%

1%

0%

195

221236

265246

297

4.71% 4.75%4.87%

5.28%5.66% 5.75%

334

6.92%

2006

METHODOLOGY: The CE-100 is based on sales revenues in 2006 eitherfull- or financial years. It is compiled from a range of sources includingaudited annual accounts, companies own statements of revenues andinformation from reputable third parties such as Dun & Bradstreet. In somecases CEhas estimated company revenues.


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Business information for thegloBal construction market

toPlists

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toPlists:

c tp200 TheWorldslargestconstructioncompanies

Yw tb TheWorldslargestconstructionequipmentmanufacturers

a 50 TheWorldslargestaccessplatformrentalcompanies

a 20 Largestaerialplatformmanufacturersbyunitsales

sd 20 Largest20scaffoldcontractorsintheworld

actc50 AnnualrankingofNorthAmericaslargestcrane-owningcompanies

acttp50 RankingoftopspecializedtransportcompaniesinNorthAmerica

alh20/20 Thelistingofthelargestaerialworkplatformeetsandthetop

telehandlerrentaleetsinNorthAmerica

D&r100 Thetopdemolitioncontractorsintheworld

tp50 Annualrankingoftheworldsspecializedtransporteets

ic50 Theworldslargestcraneoperatingcompanies

ic20 Rankingoftheworldslargestcranemanufacturers

irn 100 Theworldstopequipmentrentalcompanies.

ce-100 Europeslargestconstructioncompanies

surVeYs:

acd svy AccessInternationalsannualcondencesurvey

ce B MonthlycondencesurveyfortheEuropeanconstructionindustry

r r svy Annualsurveyofratesformobileandcrawlercranesaroundthe

world

r cd svy IRNsannualcondencesurvey

comPetitions:

tpl InternationalCranesreadersvoteforthebestliftoftheyear

sc&ra Jb Y DetailsofthewinningprojectsamongstSC&RAmembers


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Europe Top Contractors CE-100 2007