UPDATE 2-Spain's FCC will miss 2010 sales target

By Tracy Rucinski MADRID, Nov 12 (Reuters) - Spanish builder FCC warned 2010 revenues will not grow as expected, but said its other earnings targets were still on track after nine-month results showed construction continuing to drag. FCC had forecast revenue, EBITDA and net profit growth in 2010 from a year ago, with strength in services and energy offsetting a still-sluggish domestic construction sector. But revenues fell a higher-than-expected 5.2 percent in the nine months, depressed by a prolonged slump in the construction sector after a decade-long boom collapsed a few years ago. "Even though 2010 revenues may be a bit below our target, EBITDA and net profit will be in line (for growth)," FCC's financial director Victor Pastor said on a conference call, without elaborating further. Net profit fell 0.8 percent in the nine-month period to 200 million euros but beat analyst forecasts, while earnings before interest, tax, depreciation and amortisation (EBITDA) met forecasts at 1.04 billion. "It can use proceeds from parking asset sales to deliver its 2010 net profit target, but it remains to be seen whether it can meet on EBITDA," said a construction analyst for a Spanish brokerage who asked not to be named. Shares in FCC were down 0.4 percent at 19.94 euros by 1054 GMT on thin volumes, compared with a 0.6 percent rise on Spain's blue chip index. FCC, with 8.7 billion euros of debt in September, said it may launch more bonds at the beginning of 2011 after a 450 million euros convertible bond issue last year. The company has re-positioned itself in renewable energy and waste management, and diversified into international markets, to shield itself from the sharp falls in domestic construction activity. (Reporting by Tracy Rucinski; Editing by Hans Peters, Mike Nesbit) ($1=.7253 euros) Keywords: FCC/ (tracy.rucinsk@thomsonreuters.com; RM tracy.rucinski.reuters.com@reuters.net; +34 91 585 2153) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.

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