CSC profits from government spending

Computer Sciences (CSC) has reported an increase in net profit to $162.7m (£100m) for its most recent quarter, up from $141.1m a...

Computer Sciences (CSC) has reported an increase in net profit to $162.7m (£100m) for its most recent quarter, up from $141.1m a year ago, as US government spending offset weak commercial demand.

The IT services firm reported revenue of $3.08bn (£1.7bn) for its financial 2003 fourth quarter, which ended on 28 March, up from $3.04bn a year ago, CSC said.

Almost a third of its revenue came from the US federal government, CSC said. That represented an increase of 19% from a year ago and reflected its acquisition of DynCorp which was completed this year, CSC said.

Global commercial revenue for the quarter was $2.09bn (£1.3bn), down from $2.2bn a year ago. US commercial revenue dipped to $944.6m (£586m), from $1.1bn in the same period last year, CSC said.

Quarterly revenue in Europe grew 8.9%, to $838.7m (£521m), over the previous year's $770.4m, but would have been down 8.8% at constant currency rates, CSC said.

While CSC sees demand for consulting and systems integration services in North America stabilising, the company does not see that in Europe or Asia. However, outsourcing in Europe is a solid business, CSC said. Earlier this month, a team of IT services firms led by CSC signed a 10-year, $2.4bn outsourcing contract with Royal Mail.

CSC posted a yearly net profit of $440.2m (£273m), up from $344.1m in the preceding financial year. Revenue amounted to $11.35bn (£7m), compared with $11.38bn in the 2002 financial year, CSC said.

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