Indra reports net profit of Euro 182 million in 2008
Revenues increased by 10 per cent to Euro 2,380 Million.
The international market spearheaded the company's growth, with a revenue increase of 16 per cent. Revenues in the domestic market were up by 7 per cent.
The EBIT margin was 11.4 per cent.
The company has ratified its 2009 targets.
Indra has matched or beaten all of its 2008 objectives which had already been revised upwards during the course of the year. The company closed 2008 with attributable net profit of euro 182 million, a 23 per cent yoy increase, beating the target range of 18-22per cent.
Revenues totalled €2,380m, implying 10% growth; target growth was 9%-10%. Order intake increased to €2,579m, 11% higher, also beating the target range of 9%-10%. The order book increased by 8% yoy to €2,438m.
The EBIT margin stood at 11.4%, vs. 11.1% registered in the same period last year, and meeting the target EBIT margin of 11.3% -11.5%.
Faster international growth
In 2008, 66% of revenues came from the domestic market and 34% from abroad. In 2008, Indra continued to enhance its competitive foothold in international markets, which resulted in a 16% increase in revenues, versus 7% growth in Spain. By region, revenues grew by 8% in Europe, 16% in Latin America and 37% elsewhere.
The Solutions segment generated 74% of the company’s total revenues and the Services segment accounted for the remaining 26%, both growing by 10%.
Activity was buoyant in Air Traffic, Road Traffic, Security, Financial Services and Telecommunications, all of which posted sizeable international growth. Demand in the Services segment was boosted by clients’ focus on enhancing efficiency and cutting costs, which implies a more intensive and effective use of information technology.
2009 objectives and the general environment
Against a more negative general and industry-specific backdrop than the previous year, Indra’s international markets will again drive growth, with double-digit increase in both order intake and revenues forecast. In order to preserve the profitability levels attained in 2008, the company will continue to pursue its strict cost control and management policies, reviewing its operating processes to ensure that they are always fully effective.
As reported to the market on 20 January, objectives for 2009 will focus on:
- Achieving revenue growth of between 5% and 7%, with higher growth in the international markets.
- Boosting the order intake, so that it once again outstrips annual revenues and permitting an increase in the order backlog
- Maintaining the EBIT margin between 11.3% and 11.5%.
Telvent
Indra informed the CNMV on 20 February that it is involved in the process arranged by Abengoa to sell the shares it holds in its subsidiary Telvent (64%). This process is ongoing, no agreement has been reached as of yet, and the outcome of the process cannot be determined.
In this process, Indra is applying the same standards as in previous processes, and any eventual transaction must meet the following criteria: it must show clear shareholder value creation potential; it must strengthen the company’s competitive position either globally or in the various specific markets where it operates; and it must enable Indra to maintain its profile as company with a high-intensity technological offering and considerable scope for growth and profitability.