(from an article published in Global Water Intelligence, March 2006)
much of the industrial
side of its business to Siemens, Veolia Water NA (formerly USFilter) has
carved out a market space focused on large municipal contracts including
design-build-operate and sea water desalination.
Veolia Water, much like its predecessor company, USFilter, has leaned heavily on big long-term deals although projects of this nature often take years to land giving the balance sheet multi-year oscillations.
Burgess, who recently
replaced Mike Stark as CEO, has a challenge in pulling
his company out of a 50% drop in in new O&M contracts from $196
million 2004 to 96.399 in 2005.
Burgess is marketing heavily
to the fast-growing
He also expects strong
residual management systems. The company now has between $50 million to
$60 million in contracts to dry and pelletize sludge for large city
wastewater facilities. Finally, Burgess expects increased business from
the oil and petrochemical industries.
area of the US
in which Veolia has demonstrated less interest is the Northeast. Veolia
appears discouraged by saturated markets, a tough regulatory climate, and
resistance of big cities to outsourcing. Despite that reluctance, the
company is pursuing selected projects. It won a landmark contract to design-build-and operate in
a telephone interview Burgess projected a revenue increase in
2006 of at least 11% with profits exceeding 11%. Industry newsletter Public
Works Financing reported Veolia Water NA revenue of $515 million in
2004 increased to $543 million in 2005.
In a telephone interview Burgess projected a revenue increase in 2006 of at least 11% with profits exceeding 11%. Industry newsletter Public Works Financing reported Veolia Water NA revenue of $515 million in 2004 increased to $543 million in 2005.
new contracts submitted by Veolia Water North America: