Veolia Environnement 's ( VE ) net operating
income in the first quarter 2013 was €405 million ($519 million),
down 1.5% from €411 million ($543.2 million) in the year-ago
In the first quarter of 2013, total revenue was €5.75 billion
($7.37 billion) versus €5.99 billion ($7.91 billion) in the first
quarter of 2012, reflecting a decline of 3.9%.
The top-line decline was primarily due to lower contributions
from its Water, Environmental Services and Energy Services
Water : Total revenue from this segment in the
first quarter declined 2.9% year over year to €2.49 billion ($3.19
billion) from €2.61 billion ($3.44 billion). The decline was
attributable to lower construction work in France, U.K. and
Enviornmental Services : Total revenue from
this segment was €1.93 billion ($2.47 billion) versus €2.06 billion
($3.45 billion) in the first quarter of 2012, down 6.4%. The
decline was primarily due to a challenging macroeconomic
environment combined with unfavorable weather in France, U.K. and
Energy Services : The segment generated total
revenue in the first quarter of 2013 of €1.26 billion ($1.62
billion), declining 0.6% from €1.27 billion ($1.68 billion) in the
comparable year-ago quarter.
Other : Revenue generated from the Other
segment increased 62.4% to €63.2 million ($81 million) from €38.9
million ($51.4 million) in the year-ago period.
Free cash flow in the first three months ending Mar 31, 2013 was
€ 594 million ($761.3 million) compared with € 339 million ($448
million) registered in the comparable year-ago period.
Net financial debt as of Mar 31, 2013 was €10.1 billion ($12.94
billion), down from €10.8 billion ($14.27 billion) as of Dec 31,
Veolia Environnement had provided a combined outlook for the
years 2012 and 2013. The company decided to sell assets worth €6
billion and bring the net financial debt in the range of €8 billion
to €9 billion.
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 is also expected to pay a dividend of €0.70 per
share each in the next two years.
Other Company Release
Aqua America Inc. ( WTR ) reported first
quarter 2013 earnings of 29 cents, which surpassed the Zacks
Consensus Estimate of 27 cents by 7.4%.
Veolia Environnement continues to transform its business and cut
operational cost to become more competitive. The positive results
of its initial cost reduction initiatives have prompted the company
to revise its cost savings target. Veolia Environnement expects to
save €750 million in 2015 compared with the prior savings guidance
of €470 million.
Veolia Environnement retains a Zacks Rank #3 (Hold). We however
prefer Zacks Ranked #2 stocks American States Water
Company ( AWR ) and
American Water Works Company Inc. ( AWK ).
Based in France, Veolia Environnement is a provider of
environmental management services to its worldwide consumers.AMER WATER WORK (AWK): Free Stock Analysis
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