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Areva cuts earnings goals as utilities customers reduce costs
August 1, 2014 / 6:25 AM / 3 years ago

Areva cuts earnings goals as utilities customers reduce costs

PARIS, Aug 1 (Reuters) - French state-controlled nuclear group Areva swung to a first-half loss and cut its earnings targets as its struggling utilities customers cut costs and the nuclear sector remains in the doldrums.

The firm also terminated its concentrated solar power activity, which generated about 100 million euros ($133.87 million) in revenue per year but made tens of millions of losses. About 100 jobs will be cut in the United States and in India, a company spokesman said on Friday.

The firm made a 694 million euro first-half loss after just breaking even in the same period in 2013. Revenue fell 12.4 percent to 3.89 billion euros and reported earnings before interest, tax, depreciation and amortisation (EBITDA) halved to 226 million from 487 million.

For 2014, Areva expects revenue to fall 10 percent. At the publication of 2013 earnings in February, it had forecast a 2 to 5 percent fall in revenue. (1 US dollar = 0.7470 euro) (Reporting by Geert De Clercq; Editing by James Regan)

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