Waste management firm Veolia said Monday a restructuring charge bit into first-half net profit but had already improved its operational performance in a challenging economic climate.
Net profits at the French company, which also specialises in water distribution, energy, recycling and operating public transportation systems, fell by 28.8 percent to 251.2 million euros ($280 million), almost entirely due to the 95-million-euro charge to restructure its French water management unit where 430 jobs are to be cut.
However current net income, which strips out one-off charges, rose by 6.4 percent to 341.7 million euros, beating the average of 291 million euros expected by analysts surveyed by FactSet financial data reporting service.
Chief executive Antoine Frerot expressed satisfaction with the results.
"We continue to see the benefits of strict management, with savings ahead of our plan, which translated into further margin improvement and an increase in all our results," he said.
Sales slid 2.9 percent to 11.95 billion euros due to adverse changes in currency exchange rates and a fall in energy prices. With stable exchange rates, the decline in activity was limited to 1.0 percent.
However EBITDA, a measure of operating profit, increased by 3.2 percent of 1.58 billion euros due to ongoing efforts to cut costs. At constant exchange rates, it rose by 5.6 percent.
Veolia confirmed its annual target of an increase in revenue and EBITDA when measured in constant exchange rates, and current net income of 600 million euros.
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VEOLIA ENVIRONNEMENT
