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Veolia waste division hit by material prices

The waste management division of multinational services firm Veolia Environnement has reported a fall in revenue for the first quarter of 2012.

Veolia Environnement reported revenue of €7,825.5m (£6,307m) across its global divisions - up 3.4% from the same period last year.

However, the French firm said its Environmental Services waste division saw revenue decline by 0.9%.

The company said Environmental Services had been hit by the “unfavorable impact of changes in recycled raw material prices and a slight decline in volumes”.

Revenue at its Veolia Environmental Services (UK) subsidiary declined by 8.4%. The firm said: “Revenue in the United Kingdom was also negatively impacted by competitive pressure on tariffs and the trend in declining landfill volumes.”

Environmental Services revenue fell 8.8% in Germany but rose 2.2% in North America and 3.8% in France.

In March, Veolia Environmental Services (UK) reported a 6.7% rise in revenue to €1.65bn (£1.38bn) in 2011 following a number of major PFI deals, including a 25-year residual waste treatment PFI contract from Hertfordshire County Council.

The parent firm reported a net loss of €489.8m (£410m) in 2011 following substantial restructuring costs and write downs across its global business.

The company this month confirmed its objective to sell off €5bn of assets in 2012-2013 and to reduce debt below €12bn, as well as targeting €220m of gross cost reductions and €120m of net cost reductions.

It is targeting annual organic revenue growth of more than 3% after 2013, assuming a mid-cycle economic environment.

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