By Dimitri Rhodes and Leo Marchandon
(Reuters) -French IT consulting group Capgemini forecast a shock fall in annual income on Friday, citing persistent weak spot in its North American market.
The Paris-based group stated it now expects its natural gross sales to fall between 0.5% and 1.5% in 2024, in contrast with the 0-3% rise beforehand forecast.
“The slope of restoration within the second half will likely be affected by the current deterioration of the outlook within the automotive and aerospace sectors and the slower restoration in monetary companies,” CEO Aiman Ezzat stated in a press release.
The corporate posted a 5.4% year-on-year decline in income from the North America area within the first half of the yr, slower than the 7.1% fall seen within the first three months of 2024.
The market was the second largest for the group, accounting for 28% of its income within the first half of the yr. It was a drag on Capgemini’s outcomes final yr as effectively, amid a tech sector downturn.
CEO Ezzat, nevertheless, stated in a press name that North America was the area displaying the strongest restoration between the primary and second quarters.
The group’s complete headcount stood at 336,900 on the finish of June, down 4% year-on-year. The headcount was 337,200 on the finish of March.
Capgemini has slowed hiring since 2023, ending the yr with 5% fewer sources than it began it with, a primary since 2009.
The French group reported H1 income of 11.14 billion euros ($12.09 billion), down 2.5% year-on-year on a reported foundation.
The group confirmed its 2024 working margin and natural free money stream targets.
($1 = 0.9211 euros)