Veolia steps up cost cuts as sales slip
* Raises savings target to 220 mln in 2009 from 180 mln
* 9-month sales down 1.7 percent like for like
* Confirms cash flow target
(adds details)
PARIS, Nov 9 (Reuters) - Veolia Environnement (VIE.PA) on Monday raised its cost-cut target as nine-month sales declined and the French group continued to work down debt despite a decline in waste treatment due to the economic slowdown.
Veolia said its sales for the nine months to the end of September slipped to 25.36 billion euros, down 1.7 percent on a like-for-like basis, and operating cash flow was down 5.5 percent at constant exchange rates to 2.82 billion euros.
Net debt fell to 15.9 billion euros at the end of September from 16.8 billion at June 30. Finance director Thomas Piquemal told a conference call that Veolia still planned disposals of three billion euros in between 2009 and 2011, and saw cost savings of 440 million euros by the end of 2010.
He remained cautious about the fourth quarter for Veolia's waste management unit, which has been hit hard by the economic slowdown as industrial clients trimmed production and cut costs.
Last week, smaller rival Suez Environnement (SEVI.PA) maintained its full-year guidance after earnings slipped 2.1 percent.
(Reporting by Nina Sovich and Marcel Michelson; Editing by Marie Maitre)
((marcel.michelson@thomsonreuters.com; +33 1 4949 5130; Reuters Messaging: marcel.michelson.reuters.com@reuters.net)) Keywords: VEOLIA/
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