(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 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.
“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 Reporting by Thomas Escritt; Editing by Anand Basu and Jane Merriman