UPDATE: Capgemini Sees Return To Growth In Second Half
18 Februar 2010 - 10:02AM
Dow Jones News
French IT-services group Capgemini SA (CAP.FR) Thursday it is
well positioned to take advantage of a return to growth in the
second half of the year in a market already showing signs of
stabilization.
Still, Paris-based Capgemini, Europe's largest computer services
company, said tough comparisons will result in a drop in revenue in
the first half.
For the full year 2010, Capgemini expects revenue to drop
between 2% and 4% on a like-for-like basis, which strips out
acquisitions, disposals, and currency movements.
Capgemini in November revised down its full-year and second half
revenue guidance, hit by a sharp drop in demand for IT services as
companies scaled back on new projects. All its businesses, except
for outsourcing, declined amid the economic downturn.
"Our sector finished by being hit by the economic downturn in
the second half of 2009 but Capgemini nevertheless managed to post
satisfying results...we are ready to bounce back," Chief Executive
Officer Paul Hermelin said in a conference call with reporters.
Capgemini has put in place plans to optimize its production and
profitability and is interested in acquisitions in the U.S. and
emerging markets, Hermelin said.
Capgemini, which competes with U.K.-based Logica PLC (LOG.LN)
and France's Atos Origin (ATO.FR), also said it expects its
earnings before interest and tax, or EBIT, margin to be between 6%
and 6.5% this year before it rises to 8% in 2011.
Net profit in the six months ended Dec. 31 was EUR100 million,
down from the EUR220 million reported in the same period last year,
as revenue fell to EUR4 billion, from EUR4.34 billion. Net profit
was also hit by high restructuring costs, which totaled EUR215
million in 2009. Earnings and revenues met analysts'
expectations.
For this year, the group forecast restructuring costs to be
significantly lower, in the range of EUR70 million to EUR100
million, Chief Financial Officer Nicolas Dufourcq said.
EBIT in the second half of last year also fell to EUR308 million
from EUR412 million a year ago. This gave the company an EBIT
margin of 7.7% in the second half.
For the full year, like-for-like sales fell 5.5%, while the EBIT
margin was 7.1%, both in line with the company's guidance.
Capgemini said it plans to pay a dividend of EUR0.8 a share for
2009, down from EUR1 a share a year earlier.
At 0823 GMT, Capgemini shares were trading down 1.7% to
EUR31.2.
-By Ruth Bender, Dow Jones Newswires; +33 1 40 17 17 54;
ruth.bender@dowjones.com
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