Operating profit was 111 million euro a decline of 13 million euro
Operating profit was 111 million euro, a decline of 13 million euro compared tothe first half of Fiscal 2008 The operating margin was 4.3%. No cup run this time round, and where can Rovers realistically go from here? Bentley and Santa Cruz are already being talked up for summer moves, but the biggest worry for Rovers' fans must surely concern the future of their golden gaffer... Sodexo received a number of awards for the work done by its teams, inparticular:In Spain, the Department of Labor in Catalonia recognized Sodexo`s FacilitiesManagement teams for their actions to prevent occupational risks. It should be noted that the Group`s rate of development hasbeen slowed somewhat by longer decision-making processes. Randy Lerner has the cash, but will O'Neill spend it wisely enough to turn Villa in to CL contenders? And can they hold onto Captain Fantastic Gareth Barry? 8/10 7 Blackburn Rovers Mark Hughes' reputation continues to grow by the season. In Health Care and Seniors, organic revenue growth was 4.8%, driven particularlyby good growth on existing sites in France, Spain and Belgium.
Recent commercialsuccesses include ZNA-Antwerpen Hospital in Belgium and Azienda Ospedaliera G.Salvini in Italy. Last season Benni McCarthy cleaned up the "signing of the season" awards; this time round it was Roque Santa Cruz, who added goals galore and fitness to the glimpses of quality he showed at Bayern. The slight decline in revenue of -0.4% (constant scope and exchange rates) inCorporate Services results mainly from:* a major slowdown in activity during the second quarter in many countries,including France and Germany but particularly in Central Europe, Italy and theNordic countries. This good rate of growth (faster than revenuegrowth) is mainly a result of:* new labor cost productivity gains on sites in Education, Health Care andSeniors; * stringent control of overheads; * to a lesser extent, improved performance in Defense activities related mainlyto increased patronage on military bases and introduction of innovative offers.As a result, operating margin rose from 5.9% to 6.0% in the first half of thefiscal year. Sodexo was listed among the Top 100 Best Employers in the U.S. Sodexo teams in North America were recognized through numerous awards:Sodexo was named among the Top 20 Best Companies to Work For Recent Graduates byExperience, Inc., recognizing the company`s recruitment, hiring and retentionpractices. This excellent performance results from:* increased university enrollment and student participation in schoolFoodservices programs; * the excellent client retention level achieved over the past several years,accompanied by good commercial development at the end of last year.Several major contracts were won during the semester including ArmstrongAtlantic University (Georgia) and San Juan College (New Mexico).
Finally, organic revenue growth of +6.1% in Education was 2% higher than thefirst half of Fiscal 2008. Recently won contracts confirm Sodexo's leadership in a segment with highpotential and a low current level of outsourcing, including Memorial HospitalCentral (Colorado), Hurley Medical Center (Michigan) and the University ofMississippi Medical Center (Mississippi). Organicgrowth also comes from the increased contribution of contracts started theprevious year such as Mount Sinai Medical Center, Asbury Methodist Village andSt Vincent's Catholic Medical Center. Recent new contract wins include the Chicago Botanical Gardens (Illinois) andthe Indianapolis Museum of Art (Indiana). Organic revenue growth of 6.9% in Health Care and Seniors results mainly fromincreased existing site sales reflecting the relevance of Sodexo`s globalsolutions offer well-adapted to the needs of clients and patients.
New Facilities Management servicesbusiness, such as the contract with Procter & Gamble, partly offset the declinein the number of consumers in Foodservices. With a decline of -4.7%, Corporate Services is, as expected, the Group`s mostvulnerable segment to the economic downturn, given the reduction indiscretionary spending (corporate hospitality) and the reductions in employmentlevels (or staff hours) by certain clients. Analysis by geographical areaNorth AmericaRevenue in North America reached 3.1 billion euro, reflecting organic growth of3.9% The favorable average exchange rate between the U.S dollar and the euroadded 8.4% to the total growth. * a moderate decline in Corporate Services: -0.3%, reflecting:* reduced demand in North America and Europe where companies have madesignificant reductions in employment levels, implemented temporary lay-offs andshutdowns and eliminated discretionary expenditures; * an important contribution from the Rest of the World with double-digit growthin Latin America, Asia and Australia.* good performance in Education, +5.8% with a continued satisfactory growth ratein North America.Operating profit for the Food and Facilities Management services activityreached 336 million euro.
You are cautioned not to place unduereliance on our forward looking statements. ANALYSIS OF ACTIVITIES AND OPERATIONAL ENTITIESFood and Facilities Management ServicesRevenue grew 6.8%, at current exchange rates, to 7.3 billion euro, broken downas follows:* +1% from the currency effect, * +3.1% from organic growth, and * +2.7% from net changes in scope.This performance results mainly from:* good growth in Health Care and Seniors: +7.3%, illustrating Sodexo`s positionas market leader, particularly in North America. Oldham had their day at Goodison, but that was a rare off-day for Moyes' consistent team. Next Event:Third quarter Fiscal 2009 revenue: July 1, 2009 This press release contains statements that may be considered as forward-lookingstatements and as such may not relate strictly to historical or current facts.These statements represent management's views as of the date they are made andwe assume no obligation to update them.