In the clean the more proven branch turnover fell by 10

Same motive, same punishment. Without economic recovery, the activity of enterprises continues to idle, which generates less waste to treat and penalizes, quarter after quarter, the benefits of Veolia Environnement, one of the major players in the sector. The nine first months of the year, the turnover of the European giant water and cleanliness decreased by 2.8 over the same period last year, 25.4 billion euros (1.7 at constant exchange), and his recurrent operating result gave 19.3 to 1.4 billion. On its operational ability to self-financing, it deflects from 7.5 to 2.8 billion.

But if the weight of the crisis continues to be felt, the profitability is improving, through cost reductions: 100 million in 2009 in the area of cleanliness and a program of 180 million additional all combined divisions, reached at the end of September and the Group yesterday announced pay 220 million throughout the year (and 440 million) at end of 2010. Result: even if activity is stagnating or declining, "all activities have improved their profitability, increasing their operational margin of self-financing capacity, except Dalkia," said yesterday the Financial Director of the group, Thomas Piquemal, presenting the results.

Debt reduction

Another good point for the group, which highlights put the priority on the generation of cash flow, net debt decreased from 16.8 billion at June 30 15.9 billion at the end of September. On the first nine months, the operational self-financing capacity decreased investment has tripled compared to the corresponding period last year, reaching 1.6 billion, in line with the annual target of 2 billion euros that has set the group. Has generated a free cash flow after payment of the dividend of 517 million.

By activity, the turnover of the largest branch, services related to water, has made progress over nine months by 1.7 to 9.3 billion. The third quarter of 2009 was marked by a decline of 12 of Veolia Water Solutions and Technologies from the third quarter of 2008, which incorporated the contribution of large construction contracts international, now completed. In the clean, the more proven branch, turnover fell by 10.9 over nine months to EUR 6.8 billion. In addition to the decrease in volumes of collected waste, "recycling activities turnover remains a strong decrease, recycled material prices lower on the first nine months of the year of 2008 although a rebound in relative prices is noticeable over the last months", said the group. The worst could be passed: in the third quarter, the level of activity has stabilized over the past three months. Moreover, "the plan to adapt to the conditions allowed quarter elapsed to return at a rate of margin of 14.1 operational capacity of self-financing, or 60 basis points more than the rate observed over the same period of 2008".

Veolia not expected improvement in economic conditions and table throughout the year, a decline of 10 of the cleaning activity. This does not preclude further confirm its annual targets: a positive free cash flow (operating cash flow is expected to reach 3.9 billion in 2009), and 1 billion euros of disposals of assets. End September, carried out assignments were already 700 million, the rest is being finalized. Still, step of surprises, so, for investors, but the recovery does looms on the horizon.