- Shares slump at open
- Sees 2021 gross sales falling 2.4% to 10.8 bln euros
- Operating margin found at 4%, underneath earlier 6% focus on
- Warns of destructive free money movement
- Atos CEO: to announce new approach plan in Q2
PARIS, Jan 10 (Reuters) – French technological innovation consulting firm Atos (ATOS.PA) issued a profit warning on Monday, its next in 7 months, causing its shares to slump to their lowest level considering the fact that all over mid-2012.
The company’s newest profit warning also came just many days just after its new CEO Rodolphe Belmer, appointed in Oct, officially took about the reins.
Atos shares plunged by 15% in early session investing.
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Atos said its economical goals stated in July could not be achieved, because of equally to delays on discounts with customers and to decrease margins at its hardware and software resales unit.
“I joined the corporation very last week, at the time when the figures were being remaining gathered and consolidated. The latest condition of financial perception qualified prospects us to the obligation to difficulty a profit warning now because of to the significant variance in the money KPIs (key general performance indicators),” claimed Belmer.
“On the other hand, most of the things underlying this serious gap are non-recurring…I am convinced that the firm has the vital property and all the talents to function a swift turnaround”, he included.
The tenure of Atos’ preceding CEO, Elie Girard, was tainted by accounting problems and by a July 2021 earnings warning. study far more
The company’s slide from grace saw Atos exit France’s blue-chip CAC 40 (.FCHI) equity index and led to speculation about a takeover or the arrival of activist traders.
Atos stated it now envisioned a 2.4% decrease in its 2021 comprehensive 12 months revenues, coming in at 10.8 billion euros ($12.24 billion) – below a earlier forecast for “steady” sales.
Atos also now forecast an working margin at close to 4% for 2021 compared to a concentrate on of all over 6% previously, and its totally free dollars move concentrate on was now envisioned at a adverse figure of 420 million euros – below a past forecast for good cost-free income circulation.
Belmer, who previously led French satellite business Eutelsat (ETL.PA), claimed he will present a new organization of Atos’ board of directors at the stop of upcoming thirty day period, and a new approach plan in the second quarter of this calendar year.
Atos, whose shares had also slumped by all over 50% in 2021, will give its 2022 objectives on Feb 28.
($1 = .8827 euros)
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Reporting by Benoit Van Overstraeten
Enhancing by Christopher Cushing/Sudip Kar-Gupta
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