STOCKWATCH Arcadis lower as Q2 organic growth slows more than expected

Thu. August 07, 2008; Posted: 06:30 AM

PARIS, Aug 07, 2008 (Thomson Financial via COMTEX) -- ARCAY | Quote | Chart | News | PowerRating -- Arcadis NV fell after the Dutch environmental engineering group's second-quarter results showed a greater-than-expected deceleration in organic sales growth.

At 12:18 p.m., Arcadis shares were down 1.05 euros or 6.89 percent at 14.18 euros as the Next-150 index added 3.75 points or 0.26 percent to 1,467.46.

The results were "solid" but organic growth slowed more heavily than expected and the underlying EBITA margin actually declined, Rabo Securities analysts said in a note to clients

The company's new full year guidance of 10 to 15 percent growth in net profit from operations is slightly better than Rabo's forecast of around 10 percent, but the trend is worrying for the 2009 outlook, the analysts said.

"We expect a slower macro-economy to further depress organic growth," they said, putting their target price on review while keeping a 'Buy' rating.

Part of Arcadis's full-year profit growth forecast is driven by carbon credits and the guidance points to a slowdown in growth in the second half, the Rabo analysts said.

"Arcadis says its order book is well filled, but also points to economic uncertainty, which drives the need for cost containment and increased sales activities," they said.

Arcadis said profit excluding writedowns and non-operating items jumped 16 percent to 16.3 million euros in the latest three months from 14.0 million a year ago as sales climbed 23 percent to 427 million euros from 348 million.

Second-quarter sales suffered a 6 percent negative impact from currency trends, but acquisitions contributed growth of 21 percent, with organic growth coming in at 8 percent. Andrew Newby; Andrew.Newby@thomsonreuters.com an/ms1

Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.

MMMM

For full details for ARCAY click here.

More News: Market Updates | Stock Alerts | All Trading News | Stock Index

Archives

Feedback

Email Article Link

Close X

RELATED SITES

Please call 1-213-955-5858 ext. 1

Tax Relief Bank Levy Wage Garnishment

Disclaimer:

The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.

It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

The Connors Group, Inc.
15260 Ventura Blvd., Ste. 2200
Sherman Oaks, CA 91403

All analyst commentary provided on TradingMarkets.com is provided for educational purposes only. The analysts and employees or affiliates of TradingMarkets.com may hold positions in the stocks or industries discussed here. This information is NOT a recommendation or solicitation to buy or sell any securities. Your use of this and all information contained on TradingMarkets.com is governed by the Terms and Conditions of Use. Please click the link to view those terms. Follow this link to read our Editorial Policy.