This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Areva Net Profit Falls

GREG KELLER

PARIS (AP) ¿ French nuclear engineering giant Areva SA said Thursday its net profit fell slightly last year after delays and cost overruns at a major reactor project in Finland led to hundreds of millions of euros in new losses.

Paris-based Areva, the world's largest nuclear reactor builder, reported net profit of euro552 million ($754 million) for 2009, down from euro589 million in 2008.

Areva's earnings were hit by a euro550 million charge in the first half to cover additional construction delays on the 1,600-megawatt Olkiluoto 3 reactor it is building for Finnish power company TVO. The reactor, which had originally been scheduled to begin operations last year, has accumulated euro2.3 billion in losses.

The company now says the project's final cost and completion date remain uncertain.

Areva's core nuclear reactors and related services division lost a total of euro626 million last year, largely due to the troubled Finnish reactor project. Those losses were offset by strong earnings growth in the uranium mining business and stable results from Areva's waste recycling operations.

Areva is in the process of selling off its electric transmission and distribution business to a French consortium for about euro4 billion. It said that excluding this business, it earned euro270 million last year, up from euro127 million in 2008.

In a statement, Areva Chief Executive Anne Lauvergeon said the sale of the Areva T&D unit to Alstom SA and Schneider Electric would not affect the group's financial performance over the coming years. The company aims to increase its revenue by 12 percent a year to euro12 billion in 2012 and achieve a double-digit operating margin.

Last year, Areva made an operating margin of 7.6 percent, excluding the impact of the charge for delays in the Finnish reactor. Revenue grew 5.4 percent to euro8.5 billion.

This year, Areva targets "substantial" growth in revenue and orders, higher operating profit and a "strong increase" in net profit.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs