Arcadis growth dampened by Brazil, US weighs
AMSTERDAM, April 23 (Reuters) - Dutch engineering company Arcadis missed consensus earnings forecast in the first quarter, hurt by the turbulence in the Brazilian oil and gas industries and as its North American infrastructure business continued to weigh on results.
However, both revenue and earnings were sharply up on the previous year, partly because of two major acquisitions made last year. Organic gross revenue growth stood at 1 percent.
Reporting improved results on Thursday, the environmental, construction and water engineering group said it was on track to achieve "significantly" increased revenue and profit in 2015 due to improved margins, acquisitions and currency effects.
The company said "integrity issues" in the Brazilian oil and gas industry had caused a national procurement slowdown, triggering a 15 percent decline in its Brazilian activities. The decline in its North American business, which contributes more than a third of revenue, was slower than in previous quarters.
The company made organic earnings before interest, tax and amortisation of 59.4 million euros ($63.6 million), behind the 62.1 million euros analysts had forecast, off 823 million euros in gross revenue, ahead of a forecast 810 million euros. ($1 = 0.9335 euros) (Reporting By Thomas Escritt; Editing by Anand Basu)
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