Additional cost reductions for Suez Environnement’s waste operations

French environmental services group Suez Environnement has decided to raise the cost reduction target for its European waste management activities by a further €40m and to cut its net investment expenditure by €100m. This is a response to a 3 per cent drop in the amount of waste treated by the division in the first half of 2012 amid declining industrial production and a “more difficult macroeconomic context” in Europe, the company said on Wednesday at the presentation of its first half results. The European waste management division, which includes the Sita Group, recorded a 2 per cent increase in revenues to €3.272bn during the first six months of the year. However, earnings before interest, tax, depreciation and amortisation (Ebitda) were down 14 per cent, having decreased from €440m in the first half of 2011 to €378m.