Veolia Environment’s first quarter 2009 in line with expectations, VEOLIA
Release Date: 2009-05-07
Consolidated revenue: €9,267.0 million, up 5% at constant exchange rates (up 4% at current exchange rates), including 3.4% organic growth
Consolidated operating cash flow: €1,059.3 million, a decrease of 4.1% at constant exchange rates (decrease of 6.6% at current exchange rates)
Net financial debt: €16.8 billion as compared with €16.5 billion at December 31, 2008, primarily due to the seasonality of the working capital requirement.
Veolia Environnement’s unique market position and its dynamic teams allowed the company to achieve continued growth in the first quarter of 2009. The Group’s consolidated revenue was up 5% at constant exchange rates, including 3.4% internal growth, despite a difficult economic environment which led to a 7.7% decline in revenue at constant consolidation scope and exchange rates as compared with the first quarter of 2008 in the waste management business.
Due to the improvement of results in the Water, Energy and Transport divisions, the level of operating cash flow was generally resilient, amounting to €1,059.3 million. This represents a decrease of 4.1% at constant exchange rates as compared with the first quarter of 2008, which had not yet been impacted by the economic slowdown.
The measures implemented to adapt to the economic downturn in the waste management business, targeting a reduction in costs of €100 million in 2009, were launched during the first quarter. As expected, the effects of these programs will mostly eventuate during the second half of the year.
Furthermore, the Veolia 2010 efficiency plan aimed at generating €180 million in savings in 2009 and an additional €220 million in 2010, as well as efforts to reduce net investments by at least €1.6 billion to contain net investments at €2 billion, notably due to the already announced disposal program, are progressing in accordance with commitments.
The operating and financial performances in the first quarter are consistent with the objectives set for 2009: the generation of positive free cash flow(1) after payment of the dividend and the generation of operating cash flow(*) after deduction of net investments of approximately €2 billion at constant exchange rates.
(1) For the definition of free cash flow, we refer the reader to the bottom of the page.
(*) Operating cash flow from our divisions and holding company.
| Type: | NORMAL |
| Company: | VEOLIA |
| Country: | France |
| Url: | http://www.veolia.com/en/veolia-news/article.aspx?id=201 |