CFE first-half profit tumbles 18% on DEME contract termination
Cie. d’Entreprises CFE SA, the construction firm that owns half of Dredging Environmental & Marine Engineering NV, said profit declined 18 percent in the first half on losses from a cancelled DEME contract in Brazil.
Net income dropped to 26.2 million euros ($37.7 million), or 2 euros per share, from 32.1 million euros, or 2.46 euros a share, the company said today in an e-mailed statement. Revenue of 870.4 million euros in the first half was little changed from the year-earlier period.
The fall in profit resulted from “a specific difficulty in DEME’s environmental business,” the company said. DEME’s contract for a soil sanitation project in Santos, Brazil, was terminated in the second quarter “and all losses have been recognized in the half-yearly financial statements.”
CFE’s full-year revenue “should be comparable to the one of 2010,” the company said. “With respect to the net result, the activity during the second half-year should be able to recuperate all or at least a significant part of the observed difference at end of June 2011.”
