Both turnover and earnings for the European waste management activities of the environmental services company Suez dipped in the first half of 2016. Retreating prices for secondary raw materials and energy as well as currency effects led to a contraction of revenues by €38m or 1.2 per cent to €3.129bn. Earnings before interest and taxes (Ebit) only reached €136m, some 6 per cent below the €144m posted for the same period a year ago.
Thanks to growth in its extra-European waste management and water businesses as well as in its water activities in Europe, Suez recorded higher overall half-year revenues, which edged up 2 per cent to €7.46bn. The group's net result after minority shares was €174m, an improvement of nearly 25 per cent.
"Although we lost some ground in the first half of the year, we are reiterating our 2016 targets," maintained Suez CEO Jean-Louis Chaussade. He noted that in order to meet the goals, however, the company would increase its cost reduction target by €30m to €180m for the year and would more closely monitor investments and debt.