|
Shares of Capgemini fell 9.4% by 0728 GMT to hit the bottom of
the CAC40 index, after the Paris-based group said it now expects
its organic sales to fall between 0.5% and 1.5% in 2024,
compared with the 0-3% rise previously forecast.
"The slope of recovery in the second half will be affected by
the recent deterioration of the outlook in the automotive and
aerospace sectors and the slower recovery in financial
services," CEO Aiman Ezzat said in a statement.
Ezzat told analysts that supply chain challenges had slowed down
the aerospace industry, but noted that this would only affect
short-term growth.
Capgemini reported a 3.7% fall in North America revenue for the
second quarter, slower than the 7.1% drop seen in the first
three months of 2024. For the first half of the year, North
America revenue was down 5.4%.
Ezzat said North America showed the strongest recovery between
the first and second quarters.
The market was the second biggest for the group, accounting for
28% of its revenue in the first half of the year. It was a drag
on Capgemini's results last year as well, amid a tech sector
downturn.
The group's total headcount stood at 336,900 at the end of June,
down 4% from a year earlier.
Capgemini has slowed hiring since 2023, ending the year with 5%
fewer resources than it started it with, a first since 2009.
The group reported H1 revenue of 11.14 billion euros ($12.09
billion), down 2.5% year-on-year on a reported basis.
The group confirmed its 2024 operating margin and organic free
cash flow targets.
($1 = 0.9211 euros)
(Reporting by Dimitri Rhodes and Leo Marchandon; Editing by
Subhranshu Sahu)
[© 2024 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
