Suez Environnement Sales Rise 6.7% on Renewals

By Tara Patel and Ladka Bauerova

Oct. 29 (Bloomberg) -- Suez Environnement SA, Europe's second-biggest water company, boosted nine-month sales 6.7 percent as clients renewed water-supply and waste-management contracts.

Revenue climbed to 9.12 billion euros ($11.6 billion) from 8.55 billion euros a year earlier, the Paris-based company said today in an e-mailed statement. Earnings before interest, tax, depreciation and amortization rose 4.7 percent to 1.55 billion euros.

Clients signed up for repeat business in France and abroad in the period, helping Suez Environnement fend off competition from French utilities Veolia Environnement SA and Seche Environnement SA. Veolia, the world's biggest water company, warned last week that earnings would be hurt by a slowdown in European waste collection.

``We are undeniably heading for a recession, but waste and water treatment are little exposed to economic turbulence,'' Chief Executive Officer Jean-Louis Chaussade said during a conference call.

Suez Environnement rose as much as 1.59 euros, or 12 percent, to 14.44 euros in Paris and was trading up 11 percent at 14.29 euros at 12:37 p.m. local time.

The company maintained earnings and sales targets for this year. It forecasts Ebitda of 2.1 billion euros to 2.15 billion euros, compared with Ebitda last year of 2.06 billion euros.

Sales Growth

The utility's first-half revenue growth, excluding the effect of the sale of the Applus certification business sold in the fourth quarter of last year, was 6.7 percent, the utility said previously. The company expects average annual sales growth ``in excess of 5 percent'' and plans ``small'' acquisitions, it said.

Suez Environnement said last month that waste unit Sita France had acquired Boone Comenor Metalimpex, a French metal collector, to expand in recycling. No price was given for the transaction. Boone had sales of 258 million euros last year and operates in a dozen countries, building its facilities near car and household-appliance factories.

Sita also bought VPK Packaging Group NV's paper-recycling units, Doopa NV and Doopatrans NV, in the third quarter for an undisclosed sum to increase its presence in Belgium.

Suez Environnement, spun off from Suez SA and listed in July as part of its parent company's merger with Gaz de France SA, said that month it was acquiring 130 contracts and an equipment-sales company in the U.S. as it seeks to expand in that country.

To contact the reporter on this story: Tara Patel in Paris at tpatel2@bloomberg.net Ladka Bauerova in Paris at lbauerova@bloomberg.net.