8:00AM New York - Areva reports fiscal 2007 revenue up 9.8% on stronger growth in the transmission and distribution segment.

Revenue Review

Areva, the giant French nuclear engineering firm, reported 2007 revenue climbed 9.8% to €11.92 billion from €10.86 billion in 2006 on faster growth in the transmission and distribution unit.

The company said like-for-like sales gained 10.4%, at constant exchange rates.

For the year, organic sales growth in the transmission and distribution business, with key interests in India, reached 16.7% after gaining a huge contract and was up 7.1% in the nuclear unit.

In November, Areva clinched an €8 billion deal to build two third-generation nuclear reactors in China.

As a percentage of sales, earnings from the transmission and distribution accounted for 9.2%, reactor and services 6.6% and front end at 15.8%.

The group’s backlog rose 55.4% to €39.83 billion at yearend from €25.62 billion a year earlier. Growth was led by the front-end segment, up 86% followed by the reactors and services at 73% and the transmission and distribution unit up 40%.

Earnings Review

Areva posted net profit increase of 14.5% to €743 million compared with €649 million reported in the year ago period. Earnings per share in 2007 to €20.95 per share from €18.31 compared to a year ago.

For 2007, operating income rose to €751 million, leaping 84.5% from €407 million from a year ago.

As a result, 2007 operating margins improved to 6.3% from 3.7%.

Areva said income from associate companies dropped to €148 million from €220 million while higher borrowing costs reduced financial income by 34% to €64 million.

A full-year dividend of €6.77 per share has been proposed for shareholder approval on April 17 shareholder annual meeting.

The company said net debt rose to €1.95 billion versus net cash of €251 million, mainly as a result of the acquisition of UraMin. The debt compares favourably with Areva’s total equity of €7.46 billion at year-end.

Due to higher capital expenditure, the group had negative cash flows of €1.99 billion in 2007 against €358 million in 2006.

Segment Review

For fiscal 2007, transmission and distribution operating income doubled to €397 million from €191 million in 2006, despite higher commodity prices and labor costs.

Operating income from the front-end division gained to €496 million helped by faster sales growth in the enrichment business unit. Exploration and operating expenses rose while the mining and fuel units reported slower growth.