Arcadis warns of lower profits due to difficulties abroad

Restructuring in North America and problems in Brazil have cut the expected profits of Dutch built environment consulting giant, Arcadis.

Arcadis issued a profit warning this week advising investors that its operating profit for the 2015 calendar year will jump 10% on 2014, not 20% as it had hoped.

In a statement to the Dutch stock exchange Arcadis ascribed the hit to lower revenue and €5m worth of extra restructuring costs in North America and difficulties in emerging markets in the fourth quarter.

It also blamed a delay in divesting energy assets in Brazil. The company had been expecting the sales to bring in around €6m.

However, the firm said revenue increased 30%, while cash flow was "strong". The firm did not mention UK or European trading.

In Arcadis’ 2014 results the firm posted operating profit of €123.6m and revenue of €2.6bn.

In December confirmed that its staff in Brazil were helping police with an investigation into the alleged misuse of funds on a $6.4bn water management project in the north of the country.

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