PracticeConsultingCap Gemini says results will be down

Cap Gemini says results will be down

French consulting group Cap Gemini Ernst & Young says results for the third quarter will be 'far below' its previous expectations.

The French-based group, which bought Ernst & Young’s consulting arm last year, said it was now looking at the prospect of ‘moderate growth continuation’ or a reduction in global volume of business activity, based on information gathered from clients.

Cap Gemini said the effects of the 11 September attacks in America and a generally depressed business climate had cost the group ‘significant losses in revenue and bookings’, pushing back growth recovery by at least two months.

The group confirmed half year consolidated revenue of Euro 4.44bn (Pounds 2.77bn) published in July, but warned on growth in the second half of 2001.

It said it could not put a figure on revenues for the current fiscal year or budget drafts for 2002, but said a number of precautionary measures were being put in place to should a recession in Europe be confirmed.

These include a squeeze on costs, pruning of operational structures, relocating some production activities and the expansion of developmental centres.

Reports in today’s FT said analysts at some of the City’s biggest banks predicted Cap Gemini to lower profit forecasts and said the company’s exposure to the economy was greater than that of consulting rivals Accenture which released better than expected results yesterday.

Richard Leggett of Goldman Sachs said costs would have to reduced by 5% and predicted further job custs.

In June Cap Gemini cut 2,700 jobs of which 550 were made in its UK operations.

Links

UK jobs cut at Cap Gemini Ernst & Young

Accenture beats analysts’ estimates

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer