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Pre-tariff US traffic boosts revenue from the Ferrovial Highway

Ferrovial, a motorway and airports company, reported a first-quarter surprise revenue boost from freight traffic on US toll roads and Canadian toll roads, likely related to imports anticipating sweeping U.S. Tariffs, according to its CFO.

The Spanish company's surge in revenue despite the adverse winter weather is part of a larger trend of increased commercial activities at U.S. roads and ports that predated U.S. president Donald Trump's announcement on April 1, 2017 of new tariffs. Many of these remain suspended.

Ferrovial reported last week that its first-quarter revenues from its North American toll roads business rose by 14%. This shows growth in a region where the company plans to focus its investments over the next few years.

Ernesto Lopez, Chief Financial Officer Ernesto Lopez said late on Tuesday that "we were the first ones to be surprised (that) the results were even better than we expected."

Lopez added that the public data showed traffic on toll road levels to be higher than last year.

Ferrovial is a Canadian company that operates toll roads and highways in the United States. Ferrovial also plans to bid on between four and six motorway construction projects located in California, Tennessee and North Carolina.

Lopez said that the increase in commercial traffic could be due to a greater volume of goods entering Texas from the Mexican border.

North Carolina traffic was also boosted by more companies sending their employees back to work.

According to the U.S. Commerce Department Census Bureau, the U.S. Trade Deficit in Goods widened in March to a new record high as businesses increased efforts to bring merchandise in and to pre-empt the impact of tariffs. Imports to the U.S. reached a record $342.7 billion in March, mainly due to consumer goods and automobiles. (Reporting and editing by Andrei Khalip, David Goodman, and Corina Pons)

(source: Reuters)