SPACE WIRE
Getronics sees second-quarter profit plunge, issues sales warning
AMSTERDAM (AFP) Aug 02, 2004
Dutch information technology consultancy Getronics on Monday posted a net profit of four million euros (4.8 million dollars) in the second quarter of 2004, a big drop compared to the 2003 figure, and said revenues would likely remain weak for the rest of the year.

In the second quarter of 2003, Getronics had reported a 269-million-euro net profit thanks to exceptional items.

In the first six months of 2004 the company reported a 12-million-euro loss.

Due to cost-cutting efforts, operating profit surged to seven million euros in the second quarter of 2004, reversing a loss of 52 million euros in the same period last year.

Earnings before interest, tax and amortization (EBITA) from ongoing operations rose to 17 million euros from 13 million euros last year.

"The operational performance of Getronics continues to improve despite a hesitant and highly competitive ICT market," Getronics chairman Klaas Wagenaar said in a statement.

For the full year 2004, Getronics said it expected to see an EBITA superior to that of 2003.

The outlook for the full-year sales was less upbeat. Sales at the group fell 13 percent in the first six months of the year to 1.188 billion euros and are not expected to pick up between now and the end of 2004.

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