PR Newswire/Les Echos/
Q1 2013 financial information
Neuilly-sur-Seine, France, April 30, 2013
* Revenue of EUR 930.6 million, +7.2%
* Organic growth of 4.8%
* Growth of 10.3% on constant currencies and before disposals
Didier Michaud-Daniel, Chief Executive Officer of Bureau Veritas, stated:
"In the first quarter, the challenging economic backdrop in Europe, as well as
volatile metals prices and still-low shipbuilding volumes weighed on our Marine
and Commodities businesses. By contrast, the Industry, Consumer Products,
Government Services & International Trade and Certification businesses posted
very good performance following on from 2012. Group organic growth stood at
4.8% while overall growth totaled 10.3% on a constant currency basis and before
Since the beginning of the year, the Group has announced three acquisitions in
high-growth and strategic markets, namely wireless electronics testing and
industrial non-destructive testing.
We are confident in our ability to continue seizing the numerous organic
growth and acquisitions opportunities in our markets, especially in oil and
gas, electronics and in fast-growing geographies, notably in China.
In 2013, Bureau Veritas expects to deliver solid performance in line with the
targets set out in the BV2015 strategic plan. 2013 organic growth should be
slightly below the 6-8% range, the priority being to focus on profitability."
Revenue as of March 31
(in millions of euros)
Total Organic Acquisitions Disposals Currencies
930.6 868.3 +7.2% +4.8% +5.5% (1.1)% (2.0)%
Revenue +10.3% on constant currencies and before disposals
Q1 2013 revenue rose 7.2% to EUR 930.6 million.
In a difficult economic backdrop, organic growth stood at 4.8%.
* The Industry, Consumer Products, Government Services & International Trade
(GSIT) and Certification businesses, i.e. 50% of the Group's revenue,
posted very good performance.
* The Construction and In-Service Inspection & Verification (IVS) businesses
were virtually stable as expected.
* A more pronounced deterioration was noted in Metals & Minerals (Commodities
business) and in the Marine's new construction segment.
The consolidation of companies acquired contributed 5.5 percentage points of
growth and primarily concerned Tecnicontrol (Industry), TH Hill (Industry),
7Layers (Consumer Products) and AcmeLabs (Commodities).
Business disposals accounted for a 1.1% decrease in revenue and concerned
infrastructure inspection in Spain (Construction), laboratories in New Zealand
(Industry) and Anasol in Brazil (IVS).
Fluctuations in exchange rates had a negative impact of 2.0%, mainly due to
the decline in the US and Australian dollars and the Brazilian real against
Acquisitions in high-growth markets
Since the start of the year, the Group has announced three acquisitions with
combined revenue (on a fullyear 2012 basis) of more than EUR 60 million,
enabling it to develop its technical expertise in attractive market segments.
In January, the Group acquired 7Layers, a German company specialized in testing
and certification of electrical equipment and wireless technologies.
This acquisition has positioned the Group among the global leaders by doubling
the size of its activities in this segment. The market should continue to grow
rapidly, in view of constant innovation in telecommunications and machine to
In March, Bureau Veritas announced it had signed an agreement to acquire
Sievert, a leading company in non-destructive testing in India and the Middle
East. These services are notably provided during the construction of onshore
and offshore pipelines used to transport oil, gas and water. The market is
driven by rising needs for testing, both in mature economies facing ageing
infrastructure issues, and in fast-growing countries investing in new
infrastructure. The transaction is due to be completed by the end of the first
half of 2013, pending clearance by the relevant authorities and customary
In April, the Group acquired LVQ-WP, a German group specialized in
non-destructive testing and industrial inspection services. The acquisition of
LVQ-WP will help Bureau Veritas round out its industrial services offering in
Germany and Eastern Europe.
In Q1 2013, the Group's adjusted net financial debt rose slightly compared with
the level at December 31, 2012.
Outlook for 2013
In 2013, the Group should deliver solid growth in revenue and adjusted
operating profit, in line with the targets set out in the BV2015 strategic
plan, and despite a difficult economic backdrop in Europe. 2013 organic growth
should be slightly below the 6-8% range, the priority being to focus on
2012-2015 financial targets set out in the "BV201 5: Moving forward with
confidence" strategic plan
* Revenue growth: +9-12% on average per year, on a constant-currency basis:
- Two-thirds from organic growth: +6-8% on average per year
- One-third from acquisitions: +3-4% on average per year
* Improvement in adjusted operating margin:+100-150bps (relative to 2011)
Growth in adjusted EPS: + 10-15% on average per year between 2011 and 2015
Revenue by business
In millions of euros 2013 2012 Growth (%)
Total Organic Scope(1) Currencies
Marine 69.0 76.3 (9.6)% (8.8)% +0.1% (0.9)%
Industry 223.7 183.2 +22.1% +10.8% +14.7% (3.4)%
IVS 116.6 118.5 (1.6)% - (1.2)% (0.4)%
Construction 105.2 110.5 (4.8)% (0.5)% (2.2)% (2.1)%
Certification 79.4 77.2 +2.8% +5.2% (0.1)% (2.3)%
Commodities 162.3 155.8 +4.2% +2.8% +3.6% (2.2)%
Consumer Products 104.4 86.8 +20.3% +11.6% +9.2% (0.5)%
GSIT 70.0 60.0 +16.7% +16.8% +3.3% (3.4)%
Total Q1 930.6 868.3 +7.2% +4.8% +4.4% (2.0)%
(1) Impact of acquisitions and disposals
Marine (7% of Group revenue)
The ships in service inspection segment (57% of revenue in the business) rose
on the back of the 3.6% increase in the fleet classed to 92.9 million gross
tons (GRT) and the development of new services linked to energy efficiency.
The new construction segment (43% of revenue) incurred a deeper decline than
that seen in 2012. The order book fell by 27% compared with March 31, 2012 to
stand at GRT 15.2 million. The Group noted a recovery in new orders to GRT
1.5 million (+81% relative to Q1 2012).
In 2013, the Marine business should record growth in the ships in service
segment but expects no recovery in revenue from new construction before 2014.
The Group is continuing its strategy to expand in offshore and liquefied
natural gas markets.
Industry (24% of Group revenue)
Performances in the Industry business were driven by construction of new energy
infrastructure in fastgrowing regions as well as by the ramp-up of major
contracts signed in 2012.
In 2013, the Industry business should post still-robust organic growth, thanks
to expansion in the Oil & Gas and Power sectors and to the development of
IVS (13% of Group revenue)
In a difficult economic backdrop in Europe, the IVS business remained
stable. Growth in activities in France and the development in fast-growing
regions (Middle-East and Asia) was offset by the ongoing decline in Spain and
the slowdown in non-regulatory activities in northern Europe and the US.
In 2013, the IVS business should remain resistant thanks to its recurring
nature and expansion in fast-growing regions.
Construction (11% of Group revenue)
Organic growth in revenue was virtually stable. The decline in France
(53% of revenue) was offset by healthy growth in fast-growing regions and
especially China. The Group effectively withdrew from the Infrastructure
activity in Spain as of February 21, 2013.
In 2013, business should continue to slow in France, although the diverse
nature of the services portfolio should help cushion the expected decline in
the market. The Group is continuing its strategy to expand in fast-growing
regions and especially in Asia.
Certification (9% of Group revenue)
The business posted a solid performance, especially in fast-growing geographies
and in France in the food sector. Revenue was boosted by the development of
major global contracts and new certification schemes.
In 2013, the business should continue to resist thanks to growth initiatives
identified in the food sector and in sustainable development.
Commodities (17% of Group revenue)
The slowdown in growth stemmed from a decline in revenue in the Metals &
Minerals segment, primarily in exploration projects in Australia and Canada.
Other activities reported high growth levels, especially:
* In Oil & Petrochemicals, with the development of new services and laboratory
* In Coal, with the rising momentum of South Africa and Indonesia, helping to
offset the slowdown in Australia.
Growth prospects for 2013 are solid for Oil & Petrochemicals, Agriculture
products and Coal. After the decrease in Q1 2013, the Group has won new
contracts which should support a moderate recovery in the Metals & Minerals
segment during H2.
Consumer Products (11% of Group revenue)
The business posted high growth driven by:
* The Electrical & Electronics segment in which the Group is benefiting from
the proliferation of new products (tablets, mobile handsets etc) and an
increase in the laboratory network, especially thanks to the acquisition
* The Textiles & Softlines segment: with the development of new supply regions
in India, Bangladesh and northern China.
* After three years of decline, the Toys and Hardlines testing segment was
In 2013, the Group should maintain healthy growth levels with the ongoing
expansion in new segments (mobiles, automotive equipment).
GSIT (8% of Group revenue)
The outstanding performance stemmed primarily from the verification of
conformity in Iraq and Kurdistan. The traditional pre-shipment inspection
activity suffered from a decline in the value of imported goods.
While the outlook for 2013 is solid, comparison with the year-earlier period
is demanding. New contract opportunities have been identified (single window,
Conference call Analysts/Investors
Tuesday April 30, 2013 at 6 p.m. CET
The conference call in English is to be broadcast live and after the event on
the Group's website (http://finance.bureauveritas.com).
The presentation document will also be available on the website.
Financial agenda 2013
May 22, 2013: Shareholders' Meeting
August 28, 2013: publication of H1 2013 results (before trading)
November 6, 2013: publication of Q3 2013 financial information (after trading)
Claire Plais +33 (0)1 55 24 76 09
Domitille Vielle +33 (0)1 55 24 77 80
Véronique Gielec +33 (0)1 55 24 76 01
About Bureau Veritas
Bureau Veritas is a world leader in conformity assessment and certification
services. Created in 1828, the Group has almost 59,000 employees in around
1,330 offices and laboratories located in 140 countries. Bureau Veritas helps
its clients to improve their performances by offering services and innovative
solutions in order to ensure that their assets, products, infrastructure and
processes meet standards and regulations in terms of quality, health and
safety, environmental protection and social responsibility.
Bureau Veritas is listed on Euronext Paris
and belongs to the Next 20 index (Compartment A, code ISIN FR 0006174348,
stock symbol: B VI).
This press release contains forward-looking statements, which are based on
current plans and forecasts of Bureau Veritas' management. Such forward-looking
statements are by their nature subject to a number of important risk and
uncertainty factors such as those described in the registration document filed
by Bureau Veritas with the French Autorité des marchés financiers that could
cause actual results to differ from the plans, objectives and expectations
expressed in such forward-looking statements. These forward-looking statements
speak only as of the date on which they are made, and Bureau Veritas undertakes
no obligation to update or revise any of them, whether as a result of new
information, future events or otherwise, according to applicable regulations.
Press release - April 30, 2013
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-0- May/02/2013 07:24 GMT
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