First Quarter Revenue for 2002
25 April 2002
The Cap Gemini Ernst & Young Group records first quarter consolidated revenue at 1,873 million euros, 15.3% down from the same period last year at constant rates and structure (15.4% at current rates and structure). This decline is limited to 6.5% at constant rates and structure compared to the fourth quarter of 2001, whose level of activity is in general higher than in the first quarter.
The bookings level over the last three months of 2001, the continued price pressure and the capacity adjustments that the Group implemented in 2001 explain this evolution, which is in line with expectations.
The first quarter bookings’ target has been exceeded, allowing a significant improvement compared to the last quarter of 2001, with over 3.6 billion euros of new contracts including several large outsourcing deals (in particular Hydro One and Ontario Power Generation in Canada and Werklinq in Holland). It should be noted that the ratio of bookings to revenue for projects and consulting business, which was less than 1 in the last quarter, reached 1.19 for the first quarter of 2002.
The short term outlook therefore leads the Group to expect a stabilization in activity, with the second quarter revenue close to the first quarter’s. Some sectors are still in a difficult situation (telecommunications, financial services, high tech…), while others continue to grow (energy & utilities, health, public sector...).
Given the continued price pressure and a utilization rate still below objectives, operating margin for the first half of 2002 will be below the level reached in the second half of 2001.
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