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UPDATE 1-Spain's OHL shares fall as 2014 targets seen at risk
July 30, 2014 / 9:15 AM / 3 years ago

UPDATE 1-Spain's OHL shares fall as 2014 targets seen at risk

* H1 net down 36.1 percent at 57.5 million euros

* EBITDA up 3.9 percent to 490 million euros

* Revenue up 2 percent to 1.72 billion

* Shares down 4.8 percent (Recasts with share price fall, analyst comment)

MADRID, July 30 (Reuters) - Spanish infrastructure firm OHL posted a sharp drop in half-year net profit, raising concerns it would miss its full-year growth targets and sending its shares to a seven-month low.

The builder, most of whose activities are beyond Spain, announced a 36.1 percent decline in net profit to 57.5 million euros ($77 million), hit by higher financial charges and a heavier weighting of non-recourse debt.

That puts the group badly off kilter for goals of 10 percent growth in revenue, net profit and earnings before interest, taxes, depreciation and amortisation (EBITDA) for the full year.

Shares in OHL were down 4.8 percent to 29.065 euros at around 0830 GMT, the biggest decline in Spain’s blue-chip Ibex index and versus a 1.2 percent decline in the European construction index.

The stock fell as low as 28.71 euros, its lowest since December.

“These results make it complicated for OHL to reach its operating targets for the year,” said Sabadell analysts in a research note.

Broadly speaking, growth in its international activities, particularly in Mexico, offset weaker activity in Spain where the group said it was starting to see the end of a slump in building after a housing bubble burst in 2008.

EBITDA rose 3.9 percent to 490 million euros while revenue was up 2 percent to 1.72 billion. (Reporting by Elisabeth O‘Leary; Editing by Julien Toyer and David Holmes)

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