AMSTERDAM, July 27 (Reuters) - Dutch engineering consultancy Arcadis saw a sharp fall in core earnings in the second quarter, missing consensus, as delayed investments in the run-up to Britain’s European Union membership referendum and Brazil’s recession hit revenue.
The company’s operating earnings before interest, tax and amortisation (EBITA) fell 12 percent to 46.2 million euros ($50.8 million) in the second quarter, compared with the 53.3 million euros expected by analysts polled by Reuters, off gross revenue of 832 million euros.
“In Buildings, revenues decreased due to a slowdown in London, caused by Brexit-related delays in business investment decisions,” Arcadis said in a statement on Wednesday.
Britain contributed 16 percent of its revenue last year.
Arcadis said it expected continued tough conditions in the second half, with economic uncertainty following Britain’s “leave” vote, slowing emerging markets and restructuring costs in North America presenting challenges. ($1 = 0.9095 euros) (Reporting By Thomas Escritt; Editing by Gopakumar Warrier)