French water treatment and waste management firm Suez Environnement Co SA (SZEVY.PK, SZEVF.PK) Monday reported 0.8 percent increase in earnings before interest, tax, depreciation and amortization, or EBITDA for its first quarter, while revenues declined 2.6 percent from last year amid a difficult macro-economic context in Europe.
Looking ahead, the company said it aims to improve its operational performance on a constant basis.
For the first quarter, the firm posted EBITDA of 570 million euros, lower than 566 million euros in the previous year. EBITDA margin was 16.3 percent, compared to 15.8 percent a year earlier.
Revenues for the quarter declined to 3.50 billion euros from 3.59 billion euros a year earlier, excluding the impact of its Melbourne plant construction completion in December last year. Organic revenue decline was also 2.6 percent. Scope effect was positive 0.2 percent.
In Water Europe, revenues increased 3.4 percent organically. The firm said its Water Europe business increased due to contract gains and renewals, as well as steady development of new business activity.
In International divisions, revenue growth was 5.0 percent, excluding the Melbourne plant completion. The International division had a dynamic growth in Asia and Australia. Asia-Pacific posted organic growth of 8 percent. Suez Environnement said 30 percent of its revenue was from outside Europe. Meanwhile, the International division was organically down 4.1 percent.
In Waste Europe division, revenues dropped 5.3 percent in organic terms, reflecting reduction in treated volumes, as a result of decline of industrial production in Europe. Volumes were also affected particularly by difficult macro-economic environment, adverse weather conditions, and a negative 'working days' effect, as well as by a negative commodities price effect.
The company said its cost reductions initiatives further strengthened since the second half of 2012.
Jean-Louis Chaussade, chief executive officer stated, "Our Group's performance remains good despite an economic context that is particularly difficult in Europe in the beginning of 2013. This is the result, on one hand, of an optimized management of our assets with a further reinforced cost control and..."
In Paris, the shares closed Friday's regular trading at 9.84 euros.
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