AREVA Announces Excellent Sales Results for 2008
January 29, 2009
Excellent business volume:
• Backlog as of December 31, 2008: +21.1% to 48.2 billion euros
• 2008 revenue: +10.4% to 13.2 billion euros
January 29, 2009
AREVA’s backlog stood at 48.2 billion euros as of December 31, 2008, for 21.1% growth year-on-year, including 21.8% growth in Nuclear and 16.5% growth in Transmission & Distribution.
The Nuclear backlog came to 42.5 billion euros at December 31, 2008. AREVA signed several major, multiyear contracts in the Front End with EDF and U.S. and Japanese utilities, and in Reactors and Services, including an order for nine steam generators from EDF. In the Back End, in addition to contracts with the U.S. DOE and the NDA of Great Britain, AREVA signed a used fuel Treatment-Recycling contract with EDF for the 20082012 period.
The Transmission & Distribution backlog came to 5.7 billion euros at year-end. A total of 6.1 billion euros in orders was booked during the year, for an increase of 4.3% year-onyear. Recurrent business grew by 15.8% like for like11, adjusted for a major contract of approximately 500 million euros won in Qatar in 2007. The division won several important contracts in 2008, in particular with Dubai Electricity for two substations (more than 130 million euros), UTE for the Melo interconnection in Uruguay (100 million euros), StatoilHydro for an offshore wind farm in the United Kingdom (60 million euros) and Jarret Adams Aluminum Bahrain for ten transformer rectifier units (60 million euros).
The group recognized revenue of 13.2 billion euros in 2008, for year-on-year growth of 10.4% (+9.8% like-for-like1). Revenue outside France was up 10.5% to 9.5 billion euros, representing 72% of total revenue.
Revenue was up 6.5% in the Nuclear businesses (up 6.3% LFL1), with strong performance in the Reactors and Services division(+10.9% LFL1) and the Front End division (+7.2% LFL1). The Transmission and Distribution division recorded growth of 17% (+15.8% LFL1).
Compared with 2007, foreign exchange (currency translations in the financial statements) had a negative impact of 224 million euros, primarily due to changes in the value of the U.S. dollar in relation to the euro. The consolidation scope had a positive impact of 233 Manuel Lachaux million euros, corresponding mainly to acquisitions made in the Transmission & Distribution division and in Renewables.
Revenue for the fourth quarter of 2008 rose to 4.1 billion euros, up 5.2% (+1.6% LFL1) from that of the fourth quarter of 2007. Foreign exchange (currency translations) had an impact of +1 million euros and the consolidation scope an impact of +82 million euros. Revenue was up 23.3% in the Transmission & Distribution division (+21.4% LFL1), while it was down 4.2% in the Nuclear businesses (-8.3% LFL1), primarily due to the rebalancing of the Services business, which posted strong growth over the first nine months of the year, and to an unfavorable contract mix in the Back End division.
For 2009, the AREVA group anticipates further significant growth in revenue and backlog.
2008 revenue by division:
• Front End division: growth in all businesses
Revenue for the Front End division rose to 3.363 billion euros in 2008, up 7.1% over 2007 (+7.2% LFL1). Foreign exchange (currency translations) had a negative impact of 53 million euros.
Main events were as follows:
- Mining: rising average sales prices under long term uranium contracts fueled revenue growth, despite the negative impact of suspended uranium trading operations in the spot market;
- Enrichment: growth was buttressed by strong export sales, particularly in Asia, rising prices, and the growing contribution of ETC (a joint AREVA/Urenco company);
- Fuel: sales benefited from particularly strong volumes in Europe.
• Reactors and Services division: growing contribution from major contracts
Revenue for the Reactors and Services division rose to 3.037 billion euros, up 11.8% over 2007 (+10.9% LFL1). Foreign exchange (currency translations) had a negative impact of 47 million euros.
Items of note were as follows:
- Plants: the percentage of completion of major projects moved forward, with a 40% increase in contribution to division revenue in 2008;
- Nuclear Services: business was strong, particularly in the United States;
- Renewable Energies: Koblitz was successfully integrated into the biomass business;
- AREVA TA: business was up sharply, reflecting progress on the contract for the Barracuda nuclear propulsion submarines in France.
• Back End division: stable revenue
Revenue for the Back End division came to 1.692 billion euros, a drop of 2.7% (-2.5% LFL1). Foreign exchange (currency translations) had a negative impact of 3.5 million euros.
The revenue decrease reflects:
- a less favorable customer mix at La Hague, where the proportion of foreign contracts decreased slightly;
- solid business in Logistics, particularly in cask manufacturing.
• Transmission & Distribution division: strong sales growth
Revenue for the Transmission & Distribution division rose to 5.065 billion euros in 2008, up 17.0% (+15.8% LFL1). The negative foreign exchange impact (currency translations) of 121 million euros was more than offset by the positive impact of the consolidation scope (+169 million euros), mainly due to the division’s consolidation of Passoni & Villa, VEI Distribution, Nokian Capacitors and Waltec.
- The Products business unit, representing more than 60% of the division’s revenue, recorded 20.8% growth LFL1, fueled in particular by the Power Transformers product line (+36%) and shielded GIS substations (+40%). Revenue was up 13.4% and 11.8% LFL1 respectively in the Systems and Automation business units.
- Geographically, all regions reported growth, which was especially strong in Asia (+24%), particularly in India (+23%), in the Near East and Middle East (+24%), and in Europe (+15%), notably Germany.
Appendix -Consolidated revenue by quarter
Upcoming events and publications :
. February 25, 2009 – 5:45 pm (Paris time): Press release and meeting – 2008 results
. April 23, 2009 – 5:45 pm: Press release – First quarter 2009 revenue and comments
. July 30, 2009 – 5:45 pm: Press release – First half 2009 revenue and comments
. August 31, 2009 – 5:45 pm: (Paris time): Press release – First half 2009 results