• Positive trends continued across the board in the second quarter
• Organic gross revenue: record rise of 19% with strong growth in all segments and regions
• Net income from operations rose 19% in second quarter, 26% in the first half year
• Margin improved considerably
• Acquisition RTKL is a milestone for ARCADIS
• Outlook remains good: expected increase of net income from operations 2007: 20 to 25%
ARNHEM, THE NETHERLANDS – August 8, 2007 – ARCADIS (EURONEXT: ARCAD), the international consultancy and engineering company, has again booked excellent results, also for the second quarter of 2007. Gross revenues increased 19% to € 348 million. At 19% organic growth reached record levels and was high in all three service areas, with environment performing best at 25% growth. Geographically, growth was strongest in the United States and Brazil, while the Netherlands and most other European countries also saw growth at high levels. Net income from operations rose 19% to € 14.0 million.
In the first half year of 2007 gross revenues increased by 17% to € 680 million. Organic growth came out to 17%. Net income from operations increased 26% to € 26.8 million. This strong profit growth was a result of the growth of activities, a further margin improvement and the sale of carbon credits in Brazil. The margin improved to 9.8% versus 8.6% last year.
At the beginning of July, the water specialist Alkyon was acquired in the Netherlands (gross revenues € 4.5 million, 45 employees) allowing the Company to more effectively meet the growing demand for water management services resulting from climate change. Also early July, the acquisition was completed of U.S. based RTKL (gross revenues $ 195 million, 1050 employees), one of the worlds foremost companies in architectural design and planning. Both companies will be consolidated as of the third quarter of 2007.
CEO Harrie Noy about the results: "The excellent figures are in part a result of the strengthened focus on growth and margin improvement in three service areas that offer plenty of opportunity. In environment, we benefit from the integration of BBL, our advanced environmental technology, as well as our strong position with multinational clients. Internal cooperation aimed at synergy is creating new possibilities that employees are using as much as they can. The acquisition of RTKL fits within our strategy to expand services higher in the value chain and allows us to reach a leading position in the facilities service area with more involvement in large real estate development programs."
For more information contact: Joost Slooten of ARCADIS at *31-26-3778604 or e-mail at jslooten@arcadis.nl. Visit us on the internet: www.arcadis-global.com
