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2015-04-23

ARCADIS N.V.: ARCADIS delivers strong growth in the first quarter 2015 and confirms full year outlook

* Strong increase in gross revenues of +40% and net revenues of +42% driven
by acquisitions and currency effects
* Organic net revenue growth up +2%, driven by Middle East, Continental
Europe, UK and Asia
* Integration of Hyder, Callison and Canadian activities well on track
* Operating EBITA increased by +35%; excluding Hyder, operating margin of
9.8% in line with last year (9.6%). Including Hyder operating margin was
9.1%
* Free cash flow in the quarter lower than last year due to increased working
capital
* Backlog up +7% due to currency effects
* Outlook confirmed: ARCADIS expects 2015 revenues and profit to increase
significantly from recent acquisitions, organic growth, currency effects
and performance excellence initiatives

April 23, 2015 - ARCADIS (EURONEXT: ARCAD), the leading global natural and
built asset design&consultancy firm, today announced that in the first
quarter of 2015, ended March 31, the company grew its net revenues by +42%,
mainly driven by acquisitions and favorable currency effects. Organic growth
of net revenues was +2%, resulting from solid growth in the Middle East,
Continental Europe, UK and Asia. This growth was dampened by a decline of
-15% of activities in Brazil which suffers from project delays caused by a
national slowdown in procurement processes due to the integrity issues in the
oil&gas industry. At -3% the decline in our North American activities was
slower than in previous quarters. Excluding North America organic growth
would have been +4%. Absolute increase in operating EBITA was substantial at
+35%, while Hyder lowered the operating EBITA margin to 9.1%. Excluding
Hyder, operating EBITA margin was up slightly year on year.

ARCADIS CEO Neil McArthur commented: "ARCADIS delivered a solid set of results
in the first quarter and I am happy with the progress made on our 2015
priorities given the significant leadership time and effort devoted to the
integration processes for Hyder, Callison and our Canadian activities after
onboarding nearly 6,000 talented people around the world. We have developed
clear market strategies, put new combined leadership teams in place that now
run fully integrated ARCADIS businesses. The joint integration processes have
been well received by our people and will soon start delivering on the
acquisition synergies. Meanwhile, we have started implementing the quick wins
of our performance excellence program in the US, UK and Continental Europe
and are further developing the groundwork for further improvements in 2016
and beyond. I am pleased with the progress made on transforming our North
American business during the quarter. A disappointment was Brazil, where
market conditions changed and we are adjusting to the new reality quickly.
Working capital was seasonally higher, also impacted by Hyder and Callison,
and by continuing slower collections in Latin America. We are addressing this
by implementing the ARCADIS controls in the acquired entities and reinforcing
invoicing and collection procedures throughout the company.
I am confident that our efforts will continue to bear fruit in the coming
quarters and confirm our outlook for the full year."

Key figures

--------------------------------------------------------------------------
| Amounts in € millions unless otherwise stated First Quarter Growth |
|Period ended March 31 |
| 2015 2014 |
| Gross revenues 823 588 +40% |
| Organic gross revenue growth 1% |
| Net revenues 655 462 +42% |
| Organic net revenue growth 2% |
| EBITA 47.4 41.6 +14% |
| Operating EBITA1) 59.4 44.2 +35% |
| Operating EBITA margin 9.1% 9.6% |
| |
--------------------------------------------------------------------------
1)Excluding acquisition, restructuring and integration-related costs

Review of performance for the first quarter

Net revenue growth was +42% with a +28% contribution from acquisitions, and
+12% from currency effects, organic growth was +2%. Transformation of our
North American business is underway with buildings and infrastructure strong,
water leveling out. Our environmental activities, however, remained subdued.
Continental Europe continued to grow, driven by improved demand from private
sector clients across the Continent. Emerging Markets, Middle East and Asia
continued to grow on the back of investments in buildings and infrastructure,
while Latin America declined. Australia Pacific performed as planned. UK
activities grew by +70% on the back of the acquisition of Hyder and high
investment levels in transportation infrastructure and buildings.

Reported EBITA was up +14% at €47.4 million including the impact of
acquisitions and currency effects. Reported EBITA included €12.1 million of
acquisition, restructuring and integration charges (Q1 2014: €2.6 million),
which reflects the substantial amount of work that was done on performance
excellence, integration projects, and the North American transformation.
Excluding acquisition, restructuring and integration costs, operating EBITA
rose by +35%. The operating EBITA margin of 9.1% was impacted by lower
margins of Hyder including a small loss in Germany. Excluding Hyder, the
operating margin was 9.8%, slightly above last year (2014: 9.6%) despite the
lower contribution from Latin America.

Cash flow

Higher working capital weighed on free cash flow which was negative at €68
million compared to minus €34 million in the year-ago period. First quarter
working capital is seasonally higher, and was 22.3% of gross revenues (2014:
17.9%), impacted by the higher working capital needs of Hyder and Callison,
and continuing slower collections in Latin America. We are implementing
ARCADIS' working capital controls at Hyder and Callison, and reinforcing our
invoicing and collection procedures throughout the company. These measures
are expected to start delivering results in the next quarters.

Developments by business line

(relates to gross revenues in the first three months of the year unless
otherwise stated)

* Infrastructure (26% of gross revenues)

Infrastructure benefited from the acquisition of Hyder across several
geographies, including the UK and the Middle East where the first sizable
synergy wins were booked. Good organic net revenue growth in North America
and Continental Europe was offset by declines in Latin America.

* Water (14% of gross revenues)

Overall growth in water was supported by the addition of Hyder. Organic
development was driven by a return to low growth in North America and growth
in the UK, while the Middle East and Asia also performed well. Latin America
experienced a decline.

* Environment (24% of gross revenues)

The decline in environmental activities in North America slowed compared to
previous quarters, where the remediation market remained soft. The UK and
Continental Europe were essentially flat and the turmoil in the Brazilian
market caused a decline.

* Buildings (36% of gross revenues)

In Buildings, Callison and Hyder contributed significantly to overall revenue
growth. Good organic growth was achieved across all regions, although lower
growth was delivered in Asia due to market conditions in China.

Backlog

Aided by currency effects, backlog was up +7%. At constant exchange rates
backlog was stable compared to year-end 2014. Positive developments were
recorded in Continental Europe and UK. North America was flat while Emerging
Markets were somewhat down.

Outlook

With our strong market positions, strategic progress, recent acquisitions,
currency effects, and performance excellence initiatives, we expect 2015
revenues and profit to increase significantly, barring unforeseen
circumstances.
# # #

Conference Call

ARCADIS will hold a conference call to discuss its trading update for the
first quarter of 2015 on April 23, 2015. The call will begin at 15.00
Amsterdam, 09.00 New York, 14.00 London. The conference call also will be
webcast live, and can be accessed on the company's IR website
atwww.arcadis.com. A replay of the webcast will be available on the site
approximately two hours after the end of the live call.

For more information, please contact Joost Slooten of ARCADIS at +31-202011083
or outside office hours at +31-627061880 or e-mail joost.slooten@arcadis.com.

About ARCADIS:
ARCADIS is the leadingglobal natural and built asset design&consultancy
firm

working in partnership with our clients to deliverexceptional and sustainable
outcomes

through the application of design, consultancy, engineering, project and
management services. ARCADIS differentiates through its talented and
passionate people and its unique combination of capabilities covering the
whole asset life cycle, its deep market sector insights and its ability to
integrate health&safety and sustainability into the design and delivery of
solutions across the globe. We are 28,000 people that generate more than €3
billion in revenues. We support UN-Habitat with knowledge and expertise to
improve the quality of life in rapidly growing cities around the world.
Please visit:www.arcadis.com

Statements included in this press release that are not historical facts
(including any statements concerning investment objectives, other plans and
objectives of management for future operations or economic performance, or
assumptions or forecasts related thereto) are forward looking statements.
These statements are only predictions and are not guarantees. Actual events
or the results of our operations could differ materially from those expressed
or implied in the forward looking statements. Forward looking statements are
typically identified by the use of terms such as "may," "will," "should,"
"expect," "could," "intend," "plan," "anticipate," "estimate," "believe,"
"continue," "predict," "potential" or the negative of such terms and other
comparable terminology. The forward looking statements are based upon our
current expectations, plans, estimates, assumptions and beliefs that involve
numerous risks and uncertainties. Assumptions relating to the foregoing
involve judgments with respect to, among other things, future economic,
competitive and market conditions and future business decisions, all of which
are difficult or impossible to predict accurately and many of which are
beyond our control. Although we believe that the expectations reflected in
such fo...

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