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Family business roundup: Bouygues, Luxottica and Sun Hung Kai Properties post strong results

Family businesses Bouygues, Luxottica and Sun Hung Kai Properties each announced positive financial results yesterday, but French industrial conglomerate Bouygues warned that increased competition could hit its telecoms division in 2012.

Family businesses Bouygues, Luxottica and Sun Hung Kai Properties each announced positive financial results yesterday, but French industrial conglomerate Bouygues warned that increased competition could hit its telecoms division in 2012.

In a statement released on 28 February, the Paris-based company, which is 29.6% controlled by the Bouygues family, said revenues increased by 5% in 2011 to €32.7 billion, from €31.2 billion in 2010.

Operating profit at the family business, which spans construction to telecoms and media, grew by 4% in 2011 to €1.9 billion, from €1.8 billion one year earlier, the company also said.

Currently headed by second-generation chairman and chief executive Martin Bouygues, the group added that sales rose in all its divisions but were particularly robust at Bouygues Construction and its road builder Colas – both up 6% on 2010.

However, revenues increased by just 2% at its telecoms unit and at its property division, Bouygues Immobilier.

The conglomerate also warned that it expects sales at Bouygues Telecom to fall in 2012, hit by increased competition in the mobile market.

In Italy, Luxottica, the eyewear manufacturer controlled by the Del Vecchio family, said on 28 February that revenues increased to €6.2 billion in 2011, up from €5.8 billion in 2010 – a 7.3% rise.

Operating income at the Milan-based group, which owns brands such as Ray-Ban and Oakley, was €807 million in 2011, up 13.3% from €712 million in 2010.

Luxottica said it expects strong growth in 2012, buoyed by good results in emerging markets, where it estimates revenues could jump 30%, compared to a potential increase of between 5% and 7% in North America and between 4% and 6% in western Europe.

In China, Sun Hung Kai Properties, the real estate firm controlled by the Kwok family, posted revenues of HKD36.42 billion (€3.5 billion) for the first half of the fiscal year, which ended on 31 December 2011 – a 15.6% increase from HKD31.51 billion during the same period last year.

Underlying profit rose 13% to HKD11.8 billion, said the Hong Kong-based family business, which is Asia’s largest property developer.  

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