Bloomberg News

Areva Third-Quarter Sales Fall 2.9%, Hurt by Waste Recycling Dip

October 27, 2011

Oct. 27 (Bloomberg) -- Areva SA, the world’s largest provider of nuclear equipment and services, said third-quarter sales dropped 2.9 percent because of disruptions at its waste recycling business.

Revenue fell to 1.95 billion euros ($2.77 billion) from 2.01 billion euros a year earlier, the Paris-based company said in a statement today.

“Incidents in the first half of the year at the La Hague and Melox production lines were resolved and production restarted in September,” the company said. That offset higher revenue from uranium sales, reactor constructions and maintenance services.

Chief Executive Officer Luc Oursel, who took over from Anne Lauvergeon this year, will outline his strategy on Dec. 13 in the face of a slowdown in demand for reactors, fuel and services following the nuclear disaster in Japan in March. Oursel has said the company may cut jobs, delay investments and sell assets to shore up finances as Standard and Poor’s threatens to lower Areva’s BBB+ credit rating.

Since the Fukushima accident, cancellations of orders have amounted to 301 million euros as of the end of September, Areva said today.

Areva’s order book fell to 42.7 billion euros at the end of September from 43.1 billion euros at the end of June, the company said. The backlog doesn’t include an Electricite de France SA order for 32 steam generators, worth about 1.1 billion euros, which will be booked in the fourth quarter. It also excludes an order for the completion of a nuclear plant in Alabama.

--Editor: Benedikt Kammel

To contact the reporter on this story: Francois de Beaupuy in Paris at fdebeaupuy@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net


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