CORRECTED-UPDATE 1-Engineering group Arcadis forecasts solid growth for full year

(Corrects paragraph 5 to say that Brazil makes up 5 percent of
net revenues, not 29 percent)
AMSTERDAM, July 29 (Reuters) - Dutch engineering group
Arcadis ARDS.AS on Wednesday forecast solid revenue and income
growth for 2015 after reporting second-quarter profits below
expectations partly due to a slowdown in Brazil's oil industry
and North American cost overruns.
Arcadis said that including the impact from acquisitions it
expected 2015 revenues to grow by 30 percent in total, with net
income from operations up by 20 percent.
Most of the cost of integrating the new acquisitions had
come in the first half, the company said.
It said net revenue growth for 2015, excluding the impact of
acquisitions, would miss the 5 percent target the company had
set earlier because of 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 5
percent of net revenues last year, where procurement has slowed
in the oil industry due to an anti-graft campaign.
ID:nL5N0XK0JW
"If we take out the one-offs caused by cost overruns
operating results are in line with consensus," wrote Kepler
Cheuvreux analyst Andre Mulder. "FY the guidance points exactly
at the mid of the consensus range."
Arcadis shares were up 0.8 percent at 24.49 euros by 0810
GMT.
Arcadis 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," Chief Executive Neil
McArthur said. "I am confident that our profitability will
increase in the second half of the year."
Arcadis made earnings before interest, tax and amortisation
of 41.7 million euros ($46.03 million) 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.
($1 = 0.9060 euros)