Atos Origin boosts profit despite fall in sales
IT services company Atos Origin has announced full-year profits of €337m (£283m), a 6.7% year-on-year increase. However, overall sales fell by 3.5%...
IT services company Atos Origin has announced full-year profits of €337m (£283m), a 6.7% year-on-year increase.
However, overall sales fell by 3.5% to just over €5bn in the company's results for 2010. Revenue in the UK was also down by 3.5%
Thierry Breton, CEO of Atos Origin, attributed the improvement in profits to its Total Operational Performance (TOP) programme, which has increased operating margins from 4.8% in 2008 to 6.7% in 2010.
In December the company acquired Siemens IT Solutions and Services for €850m. The binding agreement with Siemens was signed on 1 February 2011. Following the deal the global workforce of Siemens' IT services division is expected to be reduced by 1,750.
"This positions the group in the best conditions to boost the integration of Siemens IT Solutions and Services by accelerating the implementation of the TOP Programme in the future new company," said Breton.
For 2011 the Atos said it expected slightly higher revenue growth in line with market growth, including six months for Siemens IT Solutions and Services, due to be consolidated from 1 July. Its operating margin is expected to be in the 7.2% to 7.7% range, it said.