ARCADIS TRADING UPDATE Q3 2017
(Thomson Reuters ONE) -
* Gross revenues ?766 million. Net revenues ?585 million, organically +3%
* EBITDA ?50 million, +2%; Operating EBITA ?45 million, +4%
* Net working capital 19.8% (Q3 2016: 20.9%)
* Free cash flow of +?41 million in Q3 leading to lower year-on-year net debt
of ?492 million
* Backlog ?2.0 billion, impacted by foreign exchange effects. Over the first
nine months, backlog increased 1% organically
* Capital markets day and strategy update on 21 November 2017 in London
KEY FIGURES
THIRD YEAR-TO-
in ? millions QUARTER DATE
Period ended 30 September
2017 2016 change 2017 2016 change
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Gross revenues 766 797 -4% 2,414 2,475 -2%
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Net revenues 585 596 -2% 1,841 1,860 -1%
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Organic growth 3% 0%
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EBITDA 50 49 2% 149 157 -5%
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EBITA 40 39 4% 120 127 -5%
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Operating EBITA(1)) 45 43 4% 136 141 -4%
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Operating EBITA margin 7.7% 7.3% 7.4% 7.6%
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Free cash flow 41 40 12 -22
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Net working capital % 19.8% 20.9%
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Net debt 492 554
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Backlog net revenues (billions) 2.0 2.2
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(1)) Excluding acquisition, restructuring and integration-related costs
Amsterdam, 25 October 2017 - Arcadis (EURONEXT: ARCAD), the leading global
Design & Consultancy firm for natural and built assets, reports a 3% organic
increase in net revenues for Q3 2017. The operating EBITA was ?45 million, an
increase of 4% versus Q3 2016.
CEO STATEMENT
Peter Oosterveer CEO Arcadis comments: "Organic net revenue growth in this
quarter was positive for the first time in nine quarters. Our focus on clients
and a positive business sentiment in the majority of our markets contributed to
a net revenue increase in North America, Continental Europe, the UK and
Australia. We also grew our earnings, in spite of a loss in Brazil, challenging
conditions in the Middle East, and currency impacts. Furthermore, we are pleased
to have received significant cash payments for milestone-based contracts in the
Middle East.
The improving results, strong pipeline, and our focus on business priorities
give me confidence that we will continue to make progress in the fourth quarter.
Global megatrends like urbanization, mobility, digital transformation and
climate change offer many opportunities for Arcadis. In combination with the
expertise and passion of our people I am convinced we can continue to grow and
improve our performance in the years ahead. We will provide a strategy update
during the capital markets day on November 21(st) 2017 in London".
REVIEW OF PERFORMANCE
Revenues by segment
Net revenues increased organically by 3% in the third quarter, trending up from
previous quarters. North America, Continental Europe, the UK, and Australia
delivered organic growth. Net revenues declined in Latin America, Asia and
CallisonRTKL.
Americas
(31% of net revenues)
in ? millions THIRD QUARTER YEAR-TO-DATE
Period ended 30 September
2017 2016 change 2017 2016 change
-------------------------------------------------------------------------------
Gross revenues 284 297 -4% 882 904 -2%
Net revenues 181 190 -5% 576 581 -1%
-------------------------------------------------------------------------------
Organic growth -1% -3%
In North America revenues increased organically by 3% in the quarter and 2%
year-to-date driven by the Environmental and Infrastructure businesses. Backlog
grew and we see a strong pipeline of opportunities.
Latin America's net revenues in the third quarter were in line with the first
quarters in 2017, bringing year-to-date revenues 29% below last year. Additional
restructuring measures were taken in Brazil to further reduce costs. Backlog
dropped especially due to a contract cancellation.
Europe & Middle East
(45% of net revenues)
in ? millions THIRD QUARTER YEAR-TO-DATE
Period ended 30 September
2017 2016 change 2017 2016 change
-----------------------------------------------------------------------------
Gross revenues 312 320 -3% 997 1,045 -5%
Net revenues 264 257 3% 830 838 -1%
-----------------------------------------------------------------------------
Organic growth 8% 3%
In Continental Europe net revenues increased organically by 9% in the quarter
and 6% year-to date to which all countries contributed. Revenue growth was
mainly driven by Buildings, and increasingly also in Environment and Water.
Strong market conditions in the private sector supported a good order intake.
The infrastructure business in the Czech Republic was divested.
The United Kingdom delivered 9% organic net revenue growth in the quarter and
6% year-to-date. Especially Infrastructure, Water, and Buildings contributed to
the growth. Backlog further improved after winning a number of strategic
pursuits.
Net revenues in the Middle East were organically flat for the quarter and
declined year-to-date by 9%. Backlog came down due to selective bidding and
lower demand.
Asia Pacific
(14% of net revenues)
in ? millions THIRD QUARTER YEAR-TO-DATE
Period ended 30 September
2017 2016 change 2017 2016 change
-------------------------------------------------------------------------------
Gross revenues 92 98 -6% 288 281 3%
Net revenues 87 88 -2% 258 254 2%
-------------------------------------------------------------------------------
Organic growth 1% 0%
Net revenues in Asia declined organically by 2% in the quarter and 4% year-to-
date. Singapore generated lower revenues due to a slower buildings market and
from exiting low margin services. Revenues in China were higher. A small
associate company in Brunei was divested. The backlog in Asia is flat.
In Australia organic net revenue grew 9% in the quarter and 8% year-to-date, as
a result of delivering key infrastructure, buildings and environmental projects
across major urban areas. Order backlog increased significantly, while the
pipeline is strong.
CallisonRTKL
(10% of net revenues)
in ? millions THIRD QUARTER YEAR-TO-DATE
Period ended 30 September
2017 2016 change 2017 2016 change
-------------------------------------------------------------------------------
Gross revenues 79 81 -4% 247 245 1%
Net revenues 53 61 -13% 177 187 -5%
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Organic growth -8% -4%
Net revenues declined organically by 8% in the quarter and 4% year-to-date,
mainly due to lower activity levels in US commercial real estate. Despite an
almost stable backlog in the third quarter, year-to-date backlog is down 9%.
CASH FLOW, WORKING CAPITAL AND BALANCE SHEET
At the end of September, net working capital as a percentage of gross revenues
was 19.8% (Q3 2016: 20.9%). Days sales outstanding decreased with 5 days to 96
days (Q3 2016: 101 days). Free cash flow in the third quarter was ?41 million
(Q3 2016: ?40 million), while year-to-date free cash flow was ?12 million (2016:
-?22 million) reflecting lower working capital. Net debt at the end of September
was ?492 million (September 2016: ?554 million).
Arcadis will invest up to ?20 million over the next 6 to 9 months to optimize
value creation of the non-core clean energy assets in Brazil ahead of a future
divestment.
Backlog
Backlog at the end of September 2017 was ?2.0 billion, negatively impacted by
foreign exchange effects (-9% year-to-date) and a significant contract
cancellation in Brazil. Over the first nine months, backlog increased 1%
organically.
Backlog grew especially in North America, the UK, Continental Europe, Asia and
Australia, while Latin America, the Middle East and CallisonRTKL saw a declining
backlog.
outlook 2017
* In general, positive business sentiment in most regions
* Increased infrastructure spending in many countries
* Uncertainty around Brazil and the Middle East remains
* Strong pipeline and cost reductions supporting profitable growth
Leadership priorities 2017
* Focusing on clients, leading to growth in backlog and revenues
* Reducing costs by simplifying organization structure, strengthening project
management and expanding Global Excellence Centers
* Reducing working capital
* Driving innovation through digitalization
* Finalizing the strategy update and progressing the strategic review of
CallisonRTKL
Financial Calendar 2017
21 November 201 7 Capital Markets Day, including strategy update
15 February 2018 Publication Full year results 2017
For further information please contact:
Arcadis Investor Relations
Jurgen Pullens
Telephone: +31 20 2011083
Mobile: +31 6 51599483
E-mail: jurgen.pullens(at)arcadis.com
Arcadis Group Communications
Joost Slooten
Mobile: +31 6 27061880
E-mail: joost.slooten(at)arcadis.com
Conference Call
As of 2017, Arcadis will host an analyst meeting, conference call, and webcast
with the
publication of the half year and full year results.
About Arcadis
Arcadis is the leading global Design & Consultancy firm for natural and built
assets. Applying our deep market sector insights and collective design,
consultancy, engineering, project and management services we work in partnership
with our clients to deliver exceptional and sustainable outcomes throughout the
lifecycle of their natural and built assets. We are 27,000 people, active in
over 70 countries that generate ?3.3 billion in revenues. We support UN-Habitat
with knowledge and expertise to improve the quality of life in rapidly growing
cities around the world. www.arcadis.com.
REGULATED INFORMATION
This press release contains information that qualifies, or may qualify as inside
information within the meaning of Article 7(1) of the EU Market Abuse
Regulation.
FORWARD LOOKING STATEMENTS
Statements included in this press release that are not historical facts
(including any statements concerning investment objectives, other plans and
objectives of management for future operations or economic performance, or
assumptions or forecasts related thereto) are forward looking statements. These
statements are only predictions and are not guarantees. Actual events or the
results of our operations could differ materially from those expressed or
implied in the forward looking statements. Forward looking statements are
typically identified by the use of terms such as "may," "will," "should,"
"expect," "could," "intend," "plan," "anticipate," "estimate," "believe,"
"continue," "predict," "potential" or the negative of such terms and other
comparable terminology. The forward looking statements are based upon our
current expectations, plans, estimates, assumptions and beliefs that involve
numerous risks and uncertainties. Assumptions relating to the foregoing involve
judgments with respect to, among other things, future economic, competitive and
market conditions and future business decisions, all of which are difficult or
impossible to predict accurately and many of which are beyond our control.
Although we believe that the expectations reflected in such forward looking
statements are based on reasonable assumptions, our actual results and
performance could differ materially from those set forth in the forward looking
statements.
Arcadis Q3 2017 Analyst presentation :
http://hugin.info/132839/R/2144257/821747.pdf
Press Release Arcadis Q3 trading update :
http://hugin.info/132839/R/2144257/821746.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Arcadis N.V. via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 25.10.2017 - 07:00 Uhr
Sprache: Deutsch
News-ID 565099
Anzahl Zeichen: 15398
contact information:
Town:
Amsterdam
Kategorie:
Business News
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