Capgemini in the black for first time since 2001

24th February 2006, Comments 0 comments

PARIS, Feb 23, 2006 (AFP) - French consulting and IT services group Capgemini reported on Thursday an annual net profit for the first time since 2001, the fruit of a deep restructuring and a turnaround of its US business.

PARIS, Feb 23, 2006 (AFP) -  French consulting and IT services group Capgemini reported on Thursday an annual net profit for the first time since 2001, the fruit of a deep restructuring and a turnaround of its US business.

The group said it had made a net profit of EUR 141 million in 2005 after a loss of EUR 534 million in 2004 because of an improvement in the markets for outsourcing and consulting.

On the Paris stock exchange, the price of shares in the group showed a gain of 5.17 percent at EUR 41.93.

Operating profit was EUR 214 million after a loss of EUR 281 million in 2004, and the operating margin reached 3.2 percent, higher than a target of 2.9 percent target set by Capgemini in November.

In the US, the company said it had returned "to a positive operating margin across all businesses in the region, notably linked to the turnaround in the consulting and technology services businesses".

Capgemini said it would propose a full-year dividend of 0.5 euros per share, representing an "exceptional" payout rate of 47 percent of net profit.

Giving forecasts for 2006, the company said: "The positive momentum witnessed during the second half of the year should enable the group to deliver growth in revenues in line with its market and deliver a significantly higher operating margin than was achieved this year."

Copyright AFP

Subject: French news

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