Cap Gemini Raises Operating Margin Forecast as First-Half Profit Climbs
Cap Gemini SA, Europe’s largest computer services company, raised its profitability forecast as first-half net income rose.
Operating margin “should exceed 6.5 percent” for 2010 as a whole, the Paris-based company said in a statement today. Cap Gemini had earlier targeted a margin rate between 6 percent and 6.5 percent. First-half net income rose 29.5 percent to 101 million euros ($131 million), the company said today.
Computer-services companies are looking to preserve revenue as governments cut spending to reduce debt. Yesterday, Atos Origin SA, the second-largest French computer-services provider, said it would reduce its U.K. public sector workforce by 5 percent to cope with expected cuts.
“The Group will enjoy a return to growth in the second half of the year,” Cap Gemini Chief Executive Officer Paul Hermelin said in the statement.
To contact the reporter on this story: Matthew Campbell in London via mcampbell39@bloomberg.net.
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