Suez reports 4.3 percent in first half sales

PARIS (AFP) Jul 31, 2003
The French energy, water and sanitation concern Suez reported on Thursday a 4.3-percent spurt in first-half sales and said it had raised its operating profit forecast for this year.

The group also said that thanks to a program of asset disposals it had cut its debt by six billion euros (6.8 billion dollars).

The company earlier in the day unveiled first-half sales of 20.7 billion euros, up 4.3 percent from the figure a year earlier, despite the negative effects of echange rates amounting to slightly more than one billion euros.

Market analysts had foreseen sales of 20.4 billion in first half 2003.

Excluding the negative impact of the rise of the euro against the dollar, along with other, smaller special charges, sales would have risen 8.4 percent.

Separately, Suez predicted that its "Optimax" action plan, in operation since January, would boost operating profit by 575 million euros in 2003 compared to initial expectations of 500 million. Operating profit is projected to grow to 650 million euros next year.

But the plan is also expected to entail a 100-million-euro exceptional charge in full-year 2003 and Suez said it would sustain "heavy" first-half charge for both Optimax and capital losses related to disposals.

Disposals in the year to date have cut company debt by six billion euros, Suez reported. The company in January had said it aimed to reduce debt of 28.2 billion euros, as of the end of 2002, by a third by the end of 2004.

Looking forward, Suez said it expected first half underlying earnings -- before interest, taxes, depreciation and amortization -- to fall compared with the same period of 2002.

But it predicted a year-on-year rise in second-half underlying erarnings from the final six months of 2002.

TERRA.WIRE