Arcadis Q2 results miss estimates on Brazil, North America woes
AMSTERDAM, July 29 (Reuters) - Dutch construction and engineering firm Arcadis 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. (Reporting by Thomas Escritt; Editing by Anand Basu)
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