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Arcadis Q2 results miss estimates on Brazil, North America woes

Published 2015-07-29, 01:39 a/m
Arcadis Q2 results miss estimates on Brazil, North America woes
ARDS
-

AMSTERDAM, July 29 (Reuters) - Dutch construction and
engineering firm Arcadis ARDS.AS on Wednesday fell short of
analyst forecasts in the second quarter, with the slowdown in
Brazil's oil industry and cost overruns in North America
weighing on results.
The company said on Wednesday that organic net revenue
growth for 2015 would miss the 5 percent target it had set
earlier, driven by declines in Brazil and North America, though
growth in other regions would be strong.
The company earns more than a third of its revenues from
North America following earlier acquisitions. Brazil made up 29
percent of net revenues last year, where procurement has slowed
in the oil industry due to an anti-graft campaign.
The impact of recent major acquisitions and of currency
effects meant that headline growth would nonetheless be strong,
Arcadis said, and it expected that attempts to improve margins
company-wide would pay off during the second half.
"Our Q2 results have been impacted by continuing poor market
conditions in Brazil and cost overruns on four environmental
remediation projects in North America," said Chief Executive
Neil McArthur.
"I am confident that our profitability will increase in the
second half of the year," he added.
Arcadis made earnings before interest, tax and amortisation
of 41.7 million euros in the second quarter, short of the 56.1
million euros forecast by analysts polled for Reuters. Gross
revenues of 868 million euros also fell short of the 871 million
euros analysts had expected.

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