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UPDATE 1-Italy's Trevi confident on 2010 target

Published 09/15/2010, 01:14 PM
Updated 09/15/2010, 01:16 PM

* Recent Trevi contracts had higher profitability

* United States now growing mildly, Europe stagnant

* Sees support for pan-EU infrastructure bonds

(Adds details, shares)

By Danilo Masoni and Giancarlo Navach

MILAN, Sept 15 (Reuters) - Italian ground engineering firm Trevi is well on track to achieving its 2010 revenue target of around 1 billion euros and recent contracts had higher margins, Chairman Davide Trevisani told Reuters on Wednesday.

"Recent contract acquisitions allow us to say that this target is more and more achievable. Revenues of 1 billion at year-end is at hand," he said in an interview ahead of a presentation to analysts of the company's first-half results.

In August, Trevi posted a 54 percent fall in first-half net profit to about 23 million euros, and predicted better sales and margins for the following half, helped by South America.

"In this period we have won orders that brought higher profitability because we operate in a niche sector," Trevisani said.

Trevi makes special foundations for levees and dams and operates in oil drilling. Rivals include Britain's Keller and Germany's Bauer.

Shares in Trevi closed up 0.3 percent at 10.39 euros on Wednesday, outperforming the broader Milan index which fell 0.6 percent.

Trevisani said Trevi, which makes around 15 percent of its revenue in North America, was preparing for U.S. President Barack Obama's plan to spend $50 billion in infrastructure. Activity in Europe remained stagnant, he said.

He also said he believed a plan by European Commission President Jose Manuel Barroso to launch pan-EU bonds to finance infrastructure projects had enough support from member states.

"I'm convinced that everyone wants them," he said.

The European Construction Industry Federation (FIEC) has asked that 20 billion euros in pan-EU infrastructure bonds be made available by the end of 2013. (Editing by Louise Heavens)

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