Cap Gemini Reports

Cap Gemini Ernst & Young, Europe's largest computer services company, revealed a drop in pre-tax profits for the year to 31.12.01 to E290m (£177.1m), compared to E884m the year previously.

The Paris based company also revealed that revenues for the first quarter of 2002 would be 'significantly lower' than the first and last quarters of 2001.

Paul Hermelin, the new Cap Gemini Chief Executive, confirmed that he did not expect to see a sales turnaround until the middle of this year at the earliest.

The group, which made 5,400 staff redundant last year, was particularly hit by falling US sales following the September 11th terrorist attacks. After acquiring Ernst & Young, around 35% of sales now originate in the States.

Gap Gemini's stock has lost around 60% of its value in the last 12 months.