Capgemini reports profit hike, confirms target

28th July 2011, Comments 0 comments

French computer consultancy Capgemini on Thursday reported a more than 25-percent gain in net profit in the first half of 2011 helped by the acquisition of Brazilian company CPM Braxis.

With the result, the company maintained its profit outlook for the year.

For the first six months of the year, Capgemini reported net profit of 127 million euros ($181 million), a 25.7-percent increase from the same period last year.

Sales rose to 4.7 billion euros in the period, a 12.9-percent increase from last year, the firm said.

The company said more than a third of sales growth came from the acquisition of Brazilian firm CPM Braxis in late 2010.

"The good growth in revenues during the first half of the year is the fruit of solid organic growth combined with a specifically targeted acquisition strategy," Chief Executive Paul Hermelin said.

"In this context, we stepped up our recruitment of young employees and increased our headcount by nearly 5,600 employees," Hermelin said.

In the first half, the company's operating margin was 6.1 percent against 5.8 percent last year, while its operating profit increased 20 percent to 240 million euros.

© 2011 AFP

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