Bureau Veritas posts improved 2013 results, sees rise in newbuilding orders

2014-03-07

Organic revenue growth of 3.5% confirmed the business resilience. Sustained growth of 7.3% was posted in 88% of activities, notably in Oil & Petrochemicals, Consumer Products, Industry and Construction, more than offsetting the 16.7% decline in Metals & Minerals, Marine new construction and Government contracts.

Operating margin rose strongly by 30 basis points to 16.7%, or +60 basis points at constant

currencies, notably thanks to the operational excellence initiatives. The Group made 7 acquisitions, strengthening its presence in strategic markets such as wireless technology, industrial non-destructive testing, and construction in Asia. With the acquisition of the

leading Canadian company Maxxam, completed in January 2014, the Group is continuing its

diversification and expansion in North America.

Chief Executive Officer Didier Michaud-Daniel commented:

“In 2013, Bureau Veritas once again achieved solid financial performance, demonstrating the balanced nature of our portfolio by sector and by geography. The increase in margins has confirmed the relevance of the operational excellence initiatives put in place. We also made accretive acquisitions, strengthening our exposure in strategic markets.

The Group expects a gradual increase in organic growth momentum and further margin expansion in 2014. We are confident in the ability of Bureau Veritas to continue the successful implementation of the BV2015 strategic plan.”

Outlook

The Group expects a gradual increase in organic growth momentum and further margin expansion in 2014.

The Group confirms 2012-2015 financial targets set out in the “BV2015: Moving forward with confidence":

Revenue growth: +9% to +12% on average per year, on a constant-currency basis:

2/3 from organic growth: +6% to +8% on average per year

1/3 from acquisitions: +3% to +4% on average per year

Improved adjusted operating margin: +100 to +150 basis points in 2015 (compared to 2011)

Growth in adjusted EPS: +10 to +15% on average per year between 2011 and 2015

Source from : Bureau Veritas

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