Atos Net Profit Misses, Forecasts Margin Gain
Net income jumped 57 percent in 2011 to 182 million euros ($241 million), while sales rose 36 percent to 6.8 billion euros, the Paris-based company said today in a statement. Analysts were expecting net income of 220 million euros on sales of 6.8 billion, according to estimates compiled by Bloomberg.
Earnings were helped by the purchase of Siemens IT Solutions and Services in July. Atos, which expanded in Germany and central and eastern Europe with the Siemens IT takeover, forecast today that the operating margin will reach 6.5 percent in 2012, and free cash flow will be about 250 million euros. The company will post a “slight” increase in sales at existing units. Revenue on that basis rose 0.3 percent in 2011.
Operating profit last year totaled 422.4 million euros, raising the margin to 6.2 percent of revenue from 4.3 percent in 2010. Analysts had predicted an operating margin of 5.2 percent.
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