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Veolia's earnings hit by German waste activities

  • Veolia Environnement (VE): H1 net profit slumps to €4M ($5.3M) from €162M a year earlier and vs consensus of €106M.
  • Adjusted net income €131M vs €18M last year.
  • Sales -3.3% to €11.07B vs forecasts of €10.6B.
  • Net profit fall reflects provision of €48M for German waste activities and another €17M for restructuring at company HQ.
  • Excluding provisions, EBITDA -7.6% to €930M, recurrent operating profit +28% to €539M.
  • Confirms 2013 earnings objectives, aims for organic revenue growth of over 3% a year after 2013.
  • CEO Antoine Frerot: Veolia doesn't expect to book further extraordinary charges other than possible restructuring charges.
  • CFO Pierre-François Riolacci: business conditions in Europe stabilized at the start of H2; slowdown in global economy could "impact us directly, especially via raw materials prices." Starting to see new orders in water business outside Europe for first time since the start of the financial crisis; toxic waste treatment business going strong.
  • Shares +4.9% in Paris. (PR)

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