Veolia Q1 Earnings Off 12% on Lower Waste

Date: May 4, 2012

Source: Veolia Environnement SA

Veolia Environnement SA (Paris, France), burdened by rising debt, reported first quarter earnings that were off 12 percent amid a "difficult" economy that lowered waste volumes and despite revenue growth of 3.4 percent. Among its biggest expenses is the company's transformation plan which involves an objective to divest 5 billion euros in assets and reduce net financial debt below 12 billion euros by the end of 2013 while also reducing costs by 220 million euros by then. Adjusted operating income fell to 543.5 million euros ($715 million) in the first quarter from 618.8 million euros a year earlier. While overall revenue was higher, particularly from water and energy services which rose by 5.3 percent, environmental services declined by 0.9 percent. France partially compensated for the declines in the United Kingdom and Germany. North American revenue rose by 2.2 percent on higher hazardous waste activity, but was negatively impacted by lower industrial services activity.

To read the company's financial highlights, visit:

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