French Company Veolia's Expertise In Municipal Services Helps It Grow

Hardly a month has gone by in the past year without Veolia Environnement (NYSE:VE) landing a contract to help a municipality somewhere in the world run, upgrade, repair or expand a water or wastewater system.

Veolia VE provides a full range of environmental services to municipal and industrial customers through four segments: water management, waste recovery management, energy management, and freight and passenger transportation.

The Paris, France, company has a presence in more than 60 countries on five continents. It provides water for 108 million people and treats more than 53 million tons of wastewater.

A growing number of municipalities are turning to outsourcers to handle water management and waste management work as they move to ensure regulatory compliance and reduce costs.
Veolia executives weren't available for comment. But analyst Michael Gaugler of Brean Murray calls the climate excellent for Veolia's services.

It is becoming increasingly difficult for municipalities to find and train people in the expertise needed to meet ongoing regulations and guidelines, and to do it in a cost-efficient manner, Gaugler says.

"If you're a municipality and looking at providing good service at a reasonable cost, chances are Veolia can do it better and cheaper than you can," he said.

One of its biggest deals in recent months came in December. Veolia Water North America landed a 10-year contract valued at $400 million with the Milwaukee Metropolitan Sewerage District.
Veolia will manage a regional wastewater system serving the greater Milwaukee area. Its services include operating a network of collection sewers, pumping stations and production management.

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