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Thursday, November 05, 2009

Capgemini Revenue Falls 7.3% On Weak IT Spending

By Barbara Kollmeyer

MarketWatch Pulse

MADRID -- French IT services and business consultancy group Capgemini on Thursday reported a 7.3% fall in third-quarter revenue to 1.95 billion euros ($2.89 billion), citing a "sharp reduction in corporate IT spending," on back of a weak global economy. On a like-for-like basis, revenue fell 9%, and revenue declined across all of its business segments. The company expects fourth-quarter revenue will see a decline similar to that of the third quarter, but due to an "extremely tight" rein on costs, Capgemini confirmed its operating margin guidance of around 7% for full-year 2009. Capgemini said it would launch five comprehensive service offerings between now and March 2010 that focus on high-growth markets to leverage the upturn being seen in some market segments.

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