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| Arcadis continues organic growth Dutch engineering consultancy Arcadis in the second quarter maintained profitability and continued organic growth of activities at 3%. Net income from operations rose 1% to € 18.5 million. This is excluding the gain of € 7.4 million from the sale of the 50% share in Arcadis Aqumen Facility Management (AAFM). Revenues and profits were positively impacted by the sale of a number of energy projects in Brazil, but negatively affected by currency effects (especially a weaker dollar against the euro). On balance, gross revenues declined 4% to € 492 million. The organic growth came from the U.S. environmental market, South America and Asia. In Europe government austerity programs resulted in a decline of activities and margin pressure. To improve the margins, cost reduction measures were implemented, for which in the quarter a reorganization charge was taken of € 6.9 million. In the first half year gross revenues were € 956 million, almost equal to last year. The organic activity growth was 4%. Net income from operations rose 4%. Gross revenues declined 4% mainly due to a negative currency effect of 6%. As a result of the sale of AAFM ) on the one hand and the acquisition of U.S.-based Rise (fourth quarter 2010) and smaller companies on the other hand, the contribution of acquisitions and divestments on balance was 1% negative. Excluding the sale of a number of energy projects in Brazil, gross revenues rose organically by 2%. Net revenues (revenues generated by own staff) were almost level. The currency effect was 6% negative. Because AAFM had a large amount of third party work, the effect of the sale was much smaller than in gross revenues resulting in a contribution from acquisitions and divestments of on balance 1% positive. Excluding the sale of a number of energy projects in Brazil, the organic growth was 3%, mainly coming from South America, the United States and Asia. Due to reduced demand from governments, European activities declined, with the Netherlands and Poland declining most. EBITA amounted to € 42.9 million, including a (tax free) gain of € 7.4 million from the sale of AAFM. Excluding this contribution, recurring EBITA rose 12% to € 35.5 million. The currency effect was 9% negative. Excluding AAFM the contribution from acquisitions and divestments on balance was 1%. First half year Gross revenues were almost in line with last year. The currency effect was 3% negative, while the contribution of acquisitions and divestments on balance was 1% negative. Excluding the sale of a number of energy projects in Brazil, gross revenues organically increased by 2%. Net revenues increased 3%. Here also, the currency effect was 3% negative, but acquisitions and divestments were on balance 1% positive. Excluding the sale of energy projects, the organic growth was 4%. EBITA was € 75.7 million. Excluding the gain from the sale of AAFM, recurring EBITA rose 12% to € 68.3 million. The currency effect was 3% negative, the contribution from acquisitions and divestments on balance zero (excluding AAFM). Taking into account these effects, the organic EBITA decline was 3%. The margin (recurring EBITA as a percentage of net revenue) came out to 9.7% (2010: 9.0%). Adjusted for the special elements referenced above, the underlying margin was 9.4% versus 10.1% last year. write your comments about the article :: © 2011 Construction News :: home page |