(MENAFN- AFP) French group Veolia, a leading global utility firm, reported a sharp fall in quarterly operating profit on Wednesday and said that sales had slipped because mild winter weather in Europe had hit its Dalkia heating division.
Shares in the group fell sharply, to show a drop of 4.09 percent to 12.79 euros in mid-day trading. The overall French CAC 40 index was down 0.16 percent.
Veolia, which says it is the world leader in water and waste management, also has wide interests in energy and transportation.
The group said that recurrent operating profit in the quarter fell by 7.3 percent or by 6.5 percent at constant exchange rates, to 376 million euros ($523 million).
However, the company's capacity to generate operating cash, similar to earnings before interest, tax, depreciation and amortisation, rose by 2.3 percent at constant exchange rates to 547 million euros.
But net debt rose to 8.55 billion euros from 8.17 billion at the end of December.
Chief executive Antoine Frerot told a telephone press conference that "our net result is significantly up from the first quarter of 2013,and so today I can reaffirm our targets for significant growth in 2014."
The results statement did not include a net profit figure.
The group, which made a net loss of 135 million euros in 2013, expects earnings before interest, tax, depreciation and amortisation this year to rise by about 10.0 percent, and financial charges to fall.
Sales in the quarter fell by 1.2 percent to 5.68 billion euros.
Frerot said: "The first quarter of 2014 confirmed the continued recovery of Veolia's results. Despite exceptionally warm weather which had an impact on Dalkia's activities, sales held up."
Veolia, which has reduced the number of countries where it has activities from 70 at the beginning of 2011 to 40, so far this year has won big contracts in Iraq, Argentina and Chile.
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