Veolia Environnement reports profit jump
French international utility group Veolia Environnement reported a leap of net profit for the first half on Friday, saying it aimed to raise operating performance this year.
For the first half, the group which provides services ranging from bus transportation to water treatment, said that in the first half net profit totalled 374 million euros (492 million dollars) from 220 million euros at the same time last year.
The outcome exceeded forecasts by analysts.
But the price of shares in the company fell by 2.76 percent to 21.1 euros. The overall French market as measured by the CAC 40 index showed a gain of 0.48 percent mid-morning.
Deputy chief executive responsible for finances, Pierre-Francois Riolacci, said that the company had confirmed that it was recovering from the economic downturn, and he stressed that margins had increased markedly.
The recurrent operating profit had risen by 6.6 percent to 1.08 billion euros and the operating capacity of the company to finance itself, a measure of the rate at which the company can accumulate unused cash to help pay for activities and investment, rose by 2.7 percent to 1.89 billion euros.
Veolia considers this measure to be particularly significant.
© 2010 AFP