Bull reports first-half loss, cuts targets
French computer group Bull, once a big name in the sector but struggling to find its way for years, reported a first-half loss on Wednesday and cut its outlook for the year.
Bull reported that in the first six months it made a net loss of 18.4 million euros (24.0 million dollars) from a net profit of 2.0 million euros in the same period last year.
The company attributed the loss to non-recurrent items, and notably a charge of 9.2 million euros for the value of Spanish subsidiary Siconet, reflecting deep and lasting economic crisis in Spain.
But sales rose by 5.9 percent to 591.3 million euros.
The company had expected to achieve earnings before interest and tax for the whole of this year of 35-40 million euros, representing a rise of 27-45 percent from the outcome last year, but lowered this on Wednesday to at least 30 million euros.
In the first half, the EBIT figure was 10.0 million euros from 13.7 million euros 12 months earlier.
Bull, which changed its chief executive at the end of April, is to present a new strategic plan in a few months' time, the new chief Philippe Vannier said.
© 2010 AFP