Vinci Withdraws 2020 Guidance Due to Coronavirus
March 23 2020 - 3:28AM
Dow Jones News
By Sarah Sloat
Vinvi SA withdrew its guidance for 2020 due to the coronavirus
pandemic's impact on business.
"It appears that Vinci will be unable to meet its target,
announced in February, of achieving revenue and earnings growth in
2020," the construction and infrastructure company said.
In its airport business, Vinci plans to lower expenses and defer
investments after a sharp drop in airport passenger numbers. Vinci
said numbers have fallen sharply in March, down about 40% in the
first three weeks and worsening further over past days.
In the auto-routes business, traffic levels rose in February but
have since fallen on the intercity network. In contracting, a
number of projects are on hold.
Outside France, it has been possible to maintain some activity
in many countries.
Overall, Vinci expects a marked revenue decline, though for a
limited time. It said it is taking steps to adjust expenditure and
evaluate investment timing. It aims "to be positioned to recover
quickly, in both Contracting and Concessions" when the crisis is
under control.
Vinci said it has a large amount of liquidity, with available
net cash of 6.5 billion euros ($6.95 billion) at end-February. It
also has a confirmed EUR8 billion credit facility that won't expire
until November 2024.
The company will update at the April 9 shareholders'
meeting.
Write to Sarah Sloat at sarah.sloat@wsj.com
(END) Dow Jones Newswires
March 23, 2020 04:13 ET (08:13 GMT)
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