Veolia says earnings increased 13 percent

Veolia Environnement SA, the world's biggest water company, said nine-month operating profit rose 13 percent, helped by waste-management acquisitions in the United Kingdom and Germany.

Earnings before interest and taxes, or Ebit, rose to 1.75 billion euros from 1.56 billion euros a year earlier, the Paris-based company said yesterday in an e-mailed statement. That's was just under the 1.76 billion-euro median estimate of six analysts surveyed by Bloomberg News.

Sales increased to 23.3 billion euros from 20.7 billion euros a year earlier, in line with the analysts' estimate.

Revenue was boosted by acquisitions including Cleanaway UK, a British provider of waste-removal services; the Belgian unit of Biffa from the UK's Severn Trent Plc water company; and German waste-handler Sulo Group. Chief Executive Officer Henri Proglio also raised 2.6 billion euros in June from the sale of new shares to make further acquisitions.

Veolia reported on August 1 that first-half sales rose 11 percent to 15.5 billion euros. Revenue growth at the energy division was crimped by unusually mild winter weather that curbed demand for heating.

"With the first quarter hit by the impact of mild climatic conditions on the energy services business, we look for a slight bounce in the growth rate" in the third quarter, Lehman Brothers Holdings Inc. said in a report published on November 2.

Full-year outlook

Veolia yesterday confirmed its sales and profit targets for the year. This year's revenue will rise more than 12 percent and operating profit will increase in line with sales, the company said on August 29. Veolia is targeting a 2007 return on capital after tax of more than 10 percent.

In the first nine months, sales at the water unit rose 8.3 percent to 7.94 billion euros. Revenue at the waste management unit rose 25 percent to 6.68 billion euros, while that at energy unit rose 7.5 percent to 4.57 billion euros and the transport business rose 14 percent to 4.14 billion euros.

Bloomberg News

(China Daily 11/08/2007 page16)