) announced its financial results for the first half of 2012. The
company's operating loss per share in the first half of 2012 was
€0.18 (23 cents), narrower than a loss of €1.11 ($1.40) incurred in
the first half of 2011.
In the first half of 2012, the total revenue of the company was
€14.78 billion ($18.59 billion) versus €14.30 billion ($17.98
billion) in the first half of 2011, reflecting growth of 3.4%.
The top-line growth was aided by positive contributions from its
segments, while lower contribution from
marginally dragged down results.
Total revenue from this segment in the first half of 2012 was €6.09
billion ($7.65 billion) versus €5.92 billion ($7.44 billion) in the
first half of 2011, up 2.9%. The growth was attributable to healthy
performance in Europe and Asia.
Total revenue from this segment in the first half of 2012 was €4.48
billion ($5.63 billion) versus €4.6 billion ($5.78 billion) in
first half of 2011, down 1.6%. The marginal dip in the
revenue was due to the challenging macroeconomic environment.
The segment generated total revenue in the first half of 2012 of
€3.9 billion ($4.9 billion) versus €3.6 billion ($4.52 billion) in
the first half of 2011, up by 9.0%. The growth in this segment was
attributable to higher energy prices.
Selling, general and administrative expenses (SG&A)
decreased 0.6% to €1.79 billion ($2.25 billion). The marginal
decline is an effect of the cost reduction initiatives undertaken
by the company.
Adjusted operating income in the first half of 2012 was €523.1
million ($657.9 million) versus €179.9 million ($226 million) in
the first half of in 2011.
Finance cost during the first half of 2012 decreased to €397.2
million ($499.5 million) from €405.3 million ($509.7 million) in
the first half of in 2011
Cash and cash equivalents of the company as of June 30, 2012
were € 4.5 billion ($5.5 billion) versus € 5.7 billion ($7.4
billion) as of December 31, 2011.
Net cash from operating activities in the first half of 2012 was
€ 820 million ($1.03 billion) versus € 864 million ($1.09 billion)
in the first half of 2011.
Net financial debt of the company as of June 30, 2012 was €14.73
billion, unchanged from the 2011 year-end level.
Veolia Environnement provided a combined outlook for 2012 and
2013. The company has decided to sell assets worth €5 billion and
bring the net financial debt level to €12 billion within the next
two financial years.
The company also provided a business outlook beyond 2013. The
company forecasts organic revenue growth of 3% per year from 2013,
while adjusted operating cash flow is expected to be over 5% per
annum. The company has also taken the initiative to reduce costs
and aims for a gross reduction of €500 million in 2015.
Veolia Environnement retains a Zacks #4 Rank, which translates
into a short-term Sell rating. Veolia's peers
Connecticut Water Service Inc.
Aqua America, Inc.
) currently retain a Zacks #2 Rank, which translates into a
short-term Buy rating.
Based in France, Veolia Environnement is a provider of
environmental management services to its worldwide consumers. It
operates through three segments, which are Water, Environmental
Services, and Energy Services.
CONN WATER SVC (CTWS): Free Stock Analysis
VEOLIA ENVIRON (VE): Free Stock Analysis Report
AQUA AMER INC (WTR): Free Stock Analysis Report
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