at €12.18 taking advantage of market weakness. The average purchase price including costs now €13.335583 a share
European waste, water push up Suez H1 results
PARIS, Aug 3 (Reuters) - Suez Environnement said first-half core earnings rose 18.3 percent due to higher demand for water and waste management in Europe and the integration of two takeovers, including Spanish water services company Agbar.
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Suez, which through its drinking water units served about 91 million people last year and treated nearly 40 million tonnes of waste, kept its growth targets as it bets on stricter environmental rules, population growth and the growing need for urban infrastructure to treat water and waste.
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Suez shares rose 3.7 percent to 13.05 euros, outperforming the broader utilities index , which added 0.8 %
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"Adhering to 2011-2013 guidance in the current economic environment is a strong message," Espirito Santo Investment Bank analysts said in a research note.
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Closely-watched core profit, or earnings before interest, tax, depreciation and amortisation (EBITDA), rose 18.3 percent to 1.23 billion euros ($1.76 billion) on sales up 11.8 percent at 7.38 billion, Suez said on Wednesday.
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Analysts had on average expected EBITDA of 1.27 billion euros and revenue of 7.307 billion, according to Thomson Reuters I/B/E/S.
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"Our profitable growth is based on innovation ... financial discipline, organic growth and ... small complementary acquisitions," Chief Executive Jean-Louis Chaussade said.
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Only Suez's International division failed to show growth, with core earnings down 4 percent as severe flooding in Australia meant it had to spend an extra 52 million euros to build a desalination plant in Melbourne.
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The world's second-largest utility group after French rival Veolia still expects to meet its financial goals for this year, including EBITDA growth of at least 10 percent and sales growth of at least 5 percent, both at constant exchange rates.
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Suez's finance director reiterated that the group was keeping its 2012-13 targets, even as the Organisation for Economic Co-operation and Development (OECD) earlier this month cautioned that the world's leading economies were headed for a slowdown.
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"We have based our guidance on the idea that world economic growth will continue to improve," Jean-Marc Boursier said at a news conference. "If things change significantly we will give an update, but for the moment we won't change anything."
Buffett's simple rule
Your job as a consumer is to stay as optimistic and realistic as possible. Your job as an investor is to keep investing regularly in the market, contributing monthly to a cheap index tracker, and/or regularly buying high-quality companies. Remember Warren Buffett's great quote: "A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful."
This market is frightened. Your final job as an investor is to decide how greedy you want to be.
Goldbug100 is a long term investor and buy taking advantage of the current fear has reduced the average purchase price from €13.81000 to €13.335583 per share
