UPDATE 2-Sacyr sinks after no news on Eiffage in 2007 results
(Adds share price decline, comments)
MADRID, March 3 (Reuters) - Sacyr Vallehermoso (SVO.MC) posted an in-line 20 percent rise in 2007 core earnings on Monday, but its shares sank on disappointment at no news on its battle to take over France's Eiffage (FOUG.PA).
The Spanish construction-to-services firm said earnings before interest, tax, depreciation and amortisation (EBITDA) were 1.28 billion euros ($1.95 billion) compared with a forecast 1.2 billion euros in a Reuters Estimates poll and 1.1 billion euros in 2006.
Net profit was up 74.5 percent at 946 million euros, boosted by the contribution of the firm's 20 percent stake in oil firm Repsol (REP.MC). Sales rose 23 percent to 5.76 billion euros.
But analysts on a conference call asked repeatedly, to no avail, about Sacyr's acrimonious battle to take over French public works and concessions firm Eiffage.
Shares fell 6.34 percent to 18.92 euros at 1602 GMT, versus a 1.86 percent fall in European building stocks .SXOP.
"Results are quite weak, but they were expected," said an analyst. "I think that weighing on sentiment is the lack of news on the 33 percent stake in Eiffage," he added.
"It is not logical for us to comment on an issue which is with the courts," Chairman Luis del Rivero told analysts.
Sacyr said last November it was open to offers for its Eiffage stake after failing in its takeover bid.
Sacyr is the French company's biggest shareholder and gains from this shareholding are to be included in results from Dec 31 2007 onwards, Sacyr said.
All Sacyr's divisions, ranging from real-estate rental to construction to toll roads, contributed to core earnings, and the group pointed to a strong order book at the end of the year.
Heavy investment and stake-building in Repsol and Eiffage (FOUG.PA) pushed net financial debt to 19.7 billion euros at the end of 2007 from 18.4 billion euros in December 2006.
Financial costs nearly tripled to 977 million euros in 2007 from 359 million the previous year. (Reporting by Carlos Ruano and Andrew Hay; Writing by Elisabeth O'Leary; Editing by Quentin Bryar)
