Contact:
Julian Mattocks
Phone: +43-1-81140-308
E-Mail: mattocks@pressetext.com
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Paris (pte046/24.02.2005/15:55) - The French IT services provider Capgemini http://www.capgemini.com returned to growth in 2004, increasing its revenue. However, the company's net income was a loss of 359 million euros, due to millions of euros of restructuring costs. The consolidated revenues totalled 6.3 billion euros year on year, while the company's operating income was 58 million euros. As the company reports today in a press release on its website, in the previous year it experienced operating income of 155 million euros. http://www.capgemini.com/news/2005/results2004-en.shtml
Above all, the restructuring costs of 220 million euros and an exceptional tax charge of 125 million euros led to the big losses in income. Following a loss of 197 euros in the previous year, the company posted a loss of 359 million euros in 2004. According to the company, 2004 was a year of transition and does not yet reflect the full year effects of either the stabilization in pricing or the improvement in the utilization rates since September, or the drastic measures taken to improve the cost base.
While European operations saw operating incomes rise from 12 million euros in the first half of the year to 110 million euros in the second half, and is starting 2005 with renewed operation confidence, North America incurred a 32 million euro loss in both the first and the second half of the year due to the consulting and technology practices. The company expect the group's revenues to increase by around 10 per cent in 2005 and operating margin should show a marked improvement over the level reached in the second half of 2004. The management's priority for 2005 is to achieve the turnaround of the North American business. According to the company, a full-scale recovery plan is underway which will restore operational breakeven in the second half of 2005.
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