The French construction group Vinci said on Tuesday that higher taxes and social charges would trim 2012 profits to slightly below the level of last year, as it released first-half results.
A group statement said that net profit declined by 3.6 percent in the first six months of the year from the same period in 2011, to 784 million euros ($964 million).
Operating profit was 1.7 percent lower at 1.54 billion euros, on sales that rose by 3.6 percent to 17.94 billion.
For all of 2012, chief executive Xavier Huillard told a telephone conference call that net and operating profits should be "close to the levels reached in 2011, before the increase in fiscal and social charges foreseen in France."
He estimated the higher costs at 10-50 million euros this year.
In terms of activity, sales were expected to gain around 15 percent outside Europe, but tight financing conditions and austerity measures would likely lead to fewer European orders for the rest of the year, the company said.
Vinci booked new orders worth 17.1 billion euros in the first half of the year, for a total of 33.2 billion at the end of June.
The group builds motorways and railways and manages public facility concessions in about 20 countries.
It released the results after trading had closed on the Paris stock exchange.
Vinci shares had ended the day with a loss of 2.5 percent at 34.55 euros.