Bureau Veritas, the world’s second-largest group in conformity assessment and certification services in the fields of quality, health and safety, environment and social responsibility, has announced Q3 2008 revenue to September 30, 2008. Frank Piedelièvre, President and Chief Executive Officer at Bureau Veritas stated:
"Growth in Q3 revenue remained high and slightly ahead of the H1 figure. Despite the global financial crisis and the economic slowdown likely in a number of countries, we are set to exceed our initial guidance for 20081.
Our overall performance, based on a wide-ranging portfolio of businesses rolled out in all continents, is primarily driven by structural growth factors such as the strengthening of regulations, the privatization and outsourcing of control and inspection services.
As such, we remain confident in our ability to deliver the targets we presented at the time of the IPO, in October 2007, namely to double group revenues and earnings between 2006 and 2011."
Q3 2008 revenue totalled €636.1 million, up 27.8% versus the year-earlier period and 32.2% on a same-currency basis. Organic growth of 13.2% was slightly ahead of the 12.9% posted in H1 2008, with a positive impact from acquisitions of 19.0% and a negative impact from exchange rates of 4.4%.
Over the first nine months of 2008, revenue rose 25.1% or 30.1% on a same-currency basis to €1,835.0 million. This growth broke down as follows:
Organic growth of 13.0%.
A 17.1% contribution from acquisitions, primarily from the consolidation of ECA in Spain, Amdel and CCI in Australia and Cesmec in Chile.
A negative impact from exchange rates of 5.0%, due to a stronger euro relative to the US dollar, the Hong-Kong dollar and the British pound during the period.
MARINE
Revenue from classification of ships under construction and onboard equipment (57% of total revenue on September 30, 2008), rose in Asia (especially in China), and in Europe (particularly in Germany, Turkey and the Netherlands).
After very strong growth in 2007 and despite a more difficult economic environment, the new ships order book continued to grow to 35.7 million gross tons at September 30, 2008, compared with 33.5 million gross tons at June 30, 2008, reflecting an increase in Bureau Veritas' market share. This order book, diversified by ship type (bulk carriers, cargo ships, containers, gas transporters, passenger ships and tankers) and by client (more than 800 ship owners and more than 600 shipbuilding yards) points to growth in 2009.
The ships in service inspection activity (43% of revenue on September 30, 2008) also grew. On September 30, 2008, the fleet classified by Bureau Veritas rose 10% relative to September 30, 2007 to 62.7 million gross tons (or 8,300 ships). In coming years, numerous ships currently being built will come into service.
9M 2008 growth was robust in Europe (France, Spain, UK, the Netherlands, Finland and Norway), Asia (China, Singapore and Malaysia), Latin America (Brazil, Argentina and Mexico), India, Russia, the Middle East and Angola. In all these countries, growth was driven by the surge in the energy sector (oil, gas, electricity).
Acquisitions growth stemmed primarily from the creation of the Mining & Minerals subdivision (acquisitions of Amdel in Australia in May 2008, CCI in Australia in June 2007 and Cesmec in Chile in April 2008), as well as the consolidation of ECA (Spain) since October 2007. The new Mining & Minerals subdivision generated revenue of €60 million over the first nine months of 2008.
Government services and international trade – GSIT
Revenue in the Government Services segment (77% of revenue in the business on September 30, 2008) rose 7.1% on a same-currency basis. Momentum in the portfolio of existing contracts as well as contract extensions in Bangladesh and the start to the contract with Guinea, helped offset the halt to the contract in Ecuador in February of this year.
Revenue from the International Trade segment (23% of revenue in the business) rose 16.5% on a likefor-like basis, with particularly strong growth in car fleet inspections and oil analysis in Africa.
III- Acquisitions
Since January 1, 2008, 13 companies have been acquired representing annual revenue of almost €160 million. The group has notably bolstered its positions in Latin America in the field of laboratory testing of minerals and other raw materials with the acquisition of Chilean leader Cesmec (2007 revenue of €21.5 million) and the Brazilian no.2 Anasol (2007 revenue of €10 million). In addition, in May 2008, Bureau Veritas acquired Amdel, the Australian leader in laboratory testing of minerals
(geochemical, mineralogical and metallurgical tests), representing estimated revenue of €113 million on June 30, 2009). This acquisition opens up sizeable outlets in the mining industry.
IV- Financing
At end-September 2008, more than 80% of financial debt at Bureau Veritas was made up of medium and long-term loans maturing between 2012 and 2020. Repayments are set to total € 64 million a year until 2011. In view of the high cash flows generated by the activity, the group is therefore more than capable of self-financing its growth.
V- 2008 estimates set to be exceeded The group has confirmed it is expecting higher growth in 2008 revenue and adjusted operating profit than the amounts communicated in February 2008. Note that these estimates were for growth in revenue and adjusted operating profit of more than 15% on a same-currency basis and after taking into
account acquisitions completed in 2008.
The 2009 growth targets will be set to take account of the economic consequences of the current financial crisis. However, their impact should be balanced by the geographic diversity and resilience of Bureau Veritas’ business portfolio, as well as the existence of structural growth factors such as the strengthening of regulations, and the privatisation and outsourcing of control and inspection operations.
"Growth in Q3 revenue remained high and slightly ahead of the H1 figure. Despite the global financial crisis and the economic slowdown likely in a number of countries, we are set to exceed our initial guidance for 20081.
Our overall performance, based on a wide-ranging portfolio of businesses rolled out in all continents, is primarily driven by structural growth factors such as the strengthening of regulations, the privatization and outsourcing of control and inspection services.
As such, we remain confident in our ability to deliver the targets we presented at the time of the IPO, in October 2007, namely to double group revenues and earnings between 2006 and 2011."
Q3 2008 revenue totalled €636.1 million, up 27.8% versus the year-earlier period and 32.2% on a same-currency basis. Organic growth of 13.2% was slightly ahead of the 12.9% posted in H1 2008, with a positive impact from acquisitions of 19.0% and a negative impact from exchange rates of 4.4%.
Over the first nine months of 2008, revenue rose 25.1% or 30.1% on a same-currency basis to €1,835.0 million. This growth broke down as follows:
Organic growth of 13.0%.
A 17.1% contribution from acquisitions, primarily from the consolidation of ECA in Spain, Amdel and CCI in Australia and Cesmec in Chile.
A negative impact from exchange rates of 5.0%, due to a stronger euro relative to the US dollar, the Hong-Kong dollar and the British pound during the period.
MARINE
Revenue from classification of ships under construction and onboard equipment (57% of total revenue on September 30, 2008), rose in Asia (especially in China), and in Europe (particularly in Germany, Turkey and the Netherlands).
After very strong growth in 2007 and despite a more difficult economic environment, the new ships order book continued to grow to 35.7 million gross tons at September 30, 2008, compared with 33.5 million gross tons at June 30, 2008, reflecting an increase in Bureau Veritas' market share. This order book, diversified by ship type (bulk carriers, cargo ships, containers, gas transporters, passenger ships and tankers) and by client (more than 800 ship owners and more than 600 shipbuilding yards) points to growth in 2009.
The ships in service inspection activity (43% of revenue on September 30, 2008) also grew. On September 30, 2008, the fleet classified by Bureau Veritas rose 10% relative to September 30, 2007 to 62.7 million gross tons (or 8,300 ships). In coming years, numerous ships currently being built will come into service.
9M 2008 growth was robust in Europe (France, Spain, UK, the Netherlands, Finland and Norway), Asia (China, Singapore and Malaysia), Latin America (Brazil, Argentina and Mexico), India, Russia, the Middle East and Angola. In all these countries, growth was driven by the surge in the energy sector (oil, gas, electricity).
Acquisitions growth stemmed primarily from the creation of the Mining & Minerals subdivision (acquisitions of Amdel in Australia in May 2008, CCI in Australia in June 2007 and Cesmec in Chile in April 2008), as well as the consolidation of ECA (Spain) since October 2007. The new Mining & Minerals subdivision generated revenue of €60 million over the first nine months of 2008.
Government services and international trade – GSIT
Revenue in the Government Services segment (77% of revenue in the business on September 30, 2008) rose 7.1% on a same-currency basis. Momentum in the portfolio of existing contracts as well as contract extensions in Bangladesh and the start to the contract with Guinea, helped offset the halt to the contract in Ecuador in February of this year.
Revenue from the International Trade segment (23% of revenue in the business) rose 16.5% on a likefor-like basis, with particularly strong growth in car fleet inspections and oil analysis in Africa.
III- Acquisitions
Since January 1, 2008, 13 companies have been acquired representing annual revenue of almost €160 million. The group has notably bolstered its positions in Latin America in the field of laboratory testing of minerals and other raw materials with the acquisition of Chilean leader Cesmec (2007 revenue of €21.5 million) and the Brazilian no.2 Anasol (2007 revenue of €10 million). In addition, in May 2008, Bureau Veritas acquired Amdel, the Australian leader in laboratory testing of minerals
(geochemical, mineralogical and metallurgical tests), representing estimated revenue of €113 million on June 30, 2009). This acquisition opens up sizeable outlets in the mining industry.
IV- Financing
At end-September 2008, more than 80% of financial debt at Bureau Veritas was made up of medium and long-term loans maturing between 2012 and 2020. Repayments are set to total € 64 million a year until 2011. In view of the high cash flows generated by the activity, the group is therefore more than capable of self-financing its growth.
V- 2008 estimates set to be exceeded The group has confirmed it is expecting higher growth in 2008 revenue and adjusted operating profit than the amounts communicated in February 2008. Note that these estimates were for growth in revenue and adjusted operating profit of more than 15% on a same-currency basis and after taking into
account acquisitions completed in 2008.
The 2009 growth targets will be set to take account of the economic consequences of the current financial crisis. However, their impact should be balanced by the geographic diversity and resilience of Bureau Veritas’ business portfolio, as well as the existence of structural growth factors such as the strengthening of regulations, and the privatisation and outsourcing of control and inspection operations.