PARIS, Jan 23 (Reuters) - French waste and water group Suez revised down its 2017 earnings target on Tuesday due to additional costs in Spain and decisions to close two services contracts in Morocco and India.
The company said its EBIT (earnings before interest and taxes) would fall 2 percent to 1.28 billion euros ($1.57 billion) in 2017 versus its previous target for slight organic growth. “EBIT was impacted in the fourth-quarter by 45 million euros of specific expenses,” the company said.
“They were caused mainly by the particular circumstances in Spain, and costs associated with the decision to terminate two services contracts, in Morocco and India, due to operational difficulties”.
Suez added that it expected organic EBIT growth to accelerate to about 3 percent in 2018, boosted by growth from water technologies and solutions business. ($1 = 0.8141 euros) (Reporting by Benjamin Mallet and Maya Nikolaeva; Editing by Adrian Croft)