) announced its 2012 financial results. The company's 2012
operating earnings per share declined 69.2% to €0.12 (16 cents)
from € 0.39 (51 cents) in 2011.
GAAP earnings during the year were €0.78 ($1.03) versus a loss
per share of €0.99 ($1.31) in 2011.
In 2012, the total revenue of the company was €29.43 billion
($38.86 billion) versus €28.57 billion ($37.76 billion) in 2011,
reflecting growth of 3.0%.
The uptrend in revenue was aided by positive contributions from
all the three segments, namely, Water, Environmental Services and
: Total revenue from this segment was €12.07 billion ($15.9
billion) versus €11.92 billion ($15.75 billion) in 2011, up 1.3%.
The rise was attributable to favorable effects of indexation in
France, price increases in Central and Eastern Europe and the
increase in Technologies and Networks industrial activities.
: Total revenue from this segment was €9.08 billion ($11.99
billion) versus €9.01 billion ($11.90 billion) in 2011, up 0.8%.
: The segment generated total revenue of €7.66 billion ($10.11
billion) versus €7.13 billion ($9.42 billion) in 2011, up 7.4%.
The growth in this segment was attributable to higher energy
prices, favorable weather conditions and growth outside France,
particularly in Poland.
: The segment generated total revenue of €0.61 billion ($0.80
billion) versus €0.5 billion ($0.66 billion) in 2011, up 21.1%.
The year-over-year rise was due to increase in waste activities
in Argentina, Mexico and to a lesser extent in Brazil.
Selling, general and administrative expenses of the company for
2012 decreased 1.6% year over year to €3.61 billion ($4.76
billion). The decline in expenses was primarily due to the cost
reduction plans undertaken by the company.
The increase in total revenues along with decline in selling,
general and administrative expenses boosted the operating margin
of the company. Adjusted operating income in 2012 was €1.1
billion ($1.45 billion), reflecting an increase of 10.1% from
€0.83 billion ($1.09 billion) in 2011.
Finance costs in 2012 were €0.84 billion ($1.10 billion),
marginally higher than the 2011 level of €0.82 billion ($1.00
billion). The increase was primarily due to the active management
of debt and costs resulting from the early redemption of US
private placements (USPP) in Feb 2012 and bond redemptions in the
fourth quarter of 2012.
Cash and cash equivalents as of Dec 31, 2012 were € 5.5 billion
($7.3 billion) versus € 5.7 billion ($7.38 billion) on Dec 31,
Net cash from operating activities in 2012 was € 2.85 billion
($3.76 billion) versus € 2.94 billion ($3.88 billion) in 2011.
Net financial debt as of Dec 31, 2012 was €11.3 billion ($14.93
billion), down from €14.73 billion ($19.07 billion) as on Dec 31,
The board of directors of the company has decided to pay
dividends to shareholders, given its strong financial position.
The board is expected to propose a dividend of €0.70 (92 cents)
per share for 2012, payable either in cash or in shares. The
dividend will be paid on Jun 14, 2013.
The company forecasts organic revenue growth of 3% per year from
2013 while adjusted operating cash flow is expected to be over 5%
The company aims to lower its net financial debt to a range
of €6 billion to €7 billion in 2013 from the current level of
€11.3 billion at 2012 end.
Other Company Releases
American Water Works Company Inc.
) reported fourth-quarter earnings per share of 30 cents, lagging
the Zacks Consensus Estimate of 35 cents by 14.3%.
American States Water Company
) reported earnings of 37 cents per share in the fourth quarter
of 2012, lagging the Zacks Consensus Estimate of 53 cents.
Aqua America, Inc.
) announced fourth-quarter 2012 operating earnings of 47 cents
per share, 95.8% above the Zacks Consensus Estimate of 24 cents.
France-based Veolia Environnement is a provider of
environmental management services to its worldwide consumers. The
company had implemented certain measures last year to turn more
competitive and pursue a growth strategy. The company has been
doing well on this strategic plan and expects 2013 to bring in
AMER WATER WORK (AWK): Free Stock Analysis
AMER STATES WTR (AWR): Free Stock Analysis
VEOLIA ENVIRON (VE): Free Stock Analysis
AQUA AMER INC (WTR): Free Stock Analysis
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Since, the company is yet to realize the full benefits of the
transformation, we prefer to retain our Zacks Rank #3 (Hold) on