Europe’s second biggest water firm, Suez Environment reported more than double its first-half profit this quarter raising its financial targets with a recent acquisition in Spain and a surge in waste treatment business.
In addition to a rise in price for recycled materials, the company has enjoyed increases in business, particularly on the waste management and treatment side. The utility will now increase its original financial targets to reflect the sudden boom in business for a sales growth goal of at least seven per cent for 2010. Additionally, the new targets will seek a nine per cent gain for earnings before taxes, interest, depreciation and amortization.
The firm will also seek free cash flow in the range of 700 million euros and cut costs by a further 250 million euros over the course of the next three years. According to Jean-Louis Chaussade, CFO of Suez Environment, the company has a limited visibility on industrial waste, but that the firm was poised for strong growth within the Asian markets and has boosted its presence in Europe.
Mr Chaussade also added that the growth in need for treatment of industrial waste over the next year will be seen in Asia and Australia. While the firm last year had to shut down 14 of its treatment sites within Europe after the market slowdown. During 2009 the firm along with larger competitor Veolia Environment SA both suffered losses as the recession reduced demands on utility services.
However, after the announcement the company’s shares have remained at a constant. The firm announced today that it had beaten the Bloomberg analyst survey estimate of 223 million euros in increased profits for a total of 386 million euros up from the previous year.
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