) reported a loss of €0.32 (42 cents) in 2013, wider than the
Zacks Consensus Estimate of a loss of 40 cents (€0.29) and a loss
of €0.15 (20 cents) incurred in 2012.
In 2013, total revenue was €22.31 billion ($29.46 billion) versus
€23.24 billion ($30.71 billion) in 2012, reflecting a decline of
The decline in revenue was primarily due to lower contributions
from all the three segments, namely, Water, Environmental
Services and Energy Services.
: Total revenue from this segment was €10.22 billion ($13.5
billion), down 4.4% from €10.69 billion ($14.1 billion) in 2012.
The decline was attributable to a weak construction business and
contractual erosion in France, partially offset by higher tariffs
due to indexation in France and in Central and Eastern Europe.
: Total revenue from this segment was €8.07 billion ($10.65
billion), down 5.1% from €8.51 billion ($11.25 billion) in 2012.
The year-over-year decline was due to a drop in recycled raw
material prices and volumes, and a drop in the activity level.
: The segment generated total revenue of €3.76 billion ($4.96
billion), down 2.5% from €3.85 billion ($5.08 billion) in 2012.
: The segment generated total revenue of €0.26 billion ($0.34
billion), up 46.0% from €0.18 billion ($0.23 billion) in 2012.
This improvement was primarily due to the acquisition of the 50%
stake held by Fomento de Construcciones y Contratas (FCC) Group
in Proactiva Medio Ambiente.
Highlight of the Release
Veolia's decision to acquire the 50% interest in Proactiva Medio
Ambiente is in sync with its strategy to expand its footprint in
the high-growth regions of South America.
The company continues to work on its asset optimization policy.
Under that plan Veolia divested a few of its existing assets to
create a portfolio, which will provide maximum return on
Veolia received loads of contracts during 2013, In Jan 2013, the
city of Rialto and its concession company Rialto Water Services
(RWS) awarded Veolia Water North America a contract to manage the
city's water and wastewater systems. This 30-year contract could
generate estimated cumulative revenue of €226 million ($300
In Dec 2013, Veolia's subsidiary, Sidem, in partnership with
Hyundai Heavy Industries received an Engineering, Purchasing,
Construction contract for the Az Zour North complex desalination
plant in Kuwait.
AMER WATER WORK (AWK): Free Stock Analysis
AMER STATES WTR (AWR): Free Stock Analysis
CALIF WATER SVC (CWT): Free Stock Analysis
VEOLIA ENVIRON (VE): Get Free Report
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Cash and cash equivalents as of Dec 31, 2013 were €4.27 billion
($5.87 billion) versus €4.99 billion ($6.59 billion) on Dec 31,
Net cash from operating activities in 2013 was €1.76 billion
($2.32 billion) versus €1.98 billion ($2.61 billion) in 2012.
Net financial debt as of Dec 31, 2013 declined significantly to
€8.2 billion ($11.29 billion) from €10.8 billion ($14.27 billion)
as on Dec 31, 2012.
The board of directors of Veolia has plans to distribute
dividends to shareholders. The board is expected to propose a
dividend of €0.70 per share for 2014.
Veolia forecasts organic revenue growth from 2013 levels while
adjusted operating cash flow is expected to be over 10% per
Other Company Releases
American Water Works Company Inc
) reported fourth quarter earnings per share of 47 cents, in line
with the Zacks Consensus Estimate.
American States Water Co.
) reported earnings of 30 cents per share in the fourth quarter
of 2013, surpassing the Zacks Consensus Estimate of 19 cents by
California Water Service Group
) reported earnings of 12 cents per share in the fourth quarter
of 2013, surpassing the Zacks Consensus Estimate of 5 cents by a
Veolia has completed the first phase of its transformation plan
in 2013 and received some benefit out of it. The company expects
to begin phase two in 2014. We expect the timely completion of
the development projects to strengthen its existing position.
Veolia Environnement currently has a Zacks Rank #4 (Sell).