(Corrects day in lead, to Wednesday, and typographical error in lead; 2017 not 207)
* Q2 EBITA down 12 pct at 46.2 mln euros vs f’cast 53.3 mln
* Sees continued tough conditions in second half
* Shares down 9.8 percent
By Thomas Escritt
AMSTERDAM, July 27 (Reuters) - Dutch engineer Arcadis posted a worse than expected drop in second-quarter core earnings and warned of Brexit-related uncertainty into 2017, sending its shares down nearly 10 percent on Wednesday.
The company, which earned 16 percent of its revenue in Britain last year, said investments had been delayed in the run-up to the country’s vote to leave the European Union and it now expects clients to pause as they re-evaluate strategies.
“We have not seen any cancellations to date,” Chief Executive Neil McArthur said. “But they are going through a period of rethinking their plans. We would expect that to have an impact on our business in 2017.”
However, McArthur said that Arcadis would benefit from British government plans to support growth by spending on infrastructure. After buying smaller rival Hyder in 2014, infrastructure became its largest business in Britain.
Arcadis expects continued tough conditions in the second half because of slowing emerging markets, with Brazil in its deepest recession in a quarter of a century, and restructuring costs in North America, which accounts for 34 percent of net 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 quarter, compared with the average estimate of 53.3 million euros in a Reuters poll of analysts.
Shares in the company were down 9.8 percent at 0721 GMT against an Amsterdam all-share index up 0.5 percent. ($1 = 0.9095 euros) (Editing by David Holmes and David Goodman)