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French tech company Atos issues new profit warning, causing its shares to slump

  • Shares slump at open up
  • Sees 2021 gross sales falling 2.4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} to 10.8 bln euros
  • Operating margin observed at 4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, underneath previously 6{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} target
  • Warns of negative no cost cash move
  • Atos CEO: to announce new system prepare in Q2

PARIS, Jan 10 (Reuters) – French technological innovation consulting firm Atos (ATOS.PA) issued a financial gain warning on Monday, its 2nd in 7 months, causing its shares to slump to their least expensive level due to the fact all over mid-2012.

The company’s latest income warning also came just many times after its new CEO Rodolphe Belmer, appointed in Oct, officially took over the reins.

Atos shares plunged by 15{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} in early session buying and selling.

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Atos reported its financial aims said in July could not be fulfilled, owing each to delays on specials with buyers and to lower margins at its hardware and computer software resales device.

“I joined the business very last week, at the time when the figures have been currently being gathered and consolidated. The recent point out of economic insight prospects us to the obligation to difficulty a earnings warning right now thanks to the considerable variance in the economical KPIs (key efficiency indicators),” said Belmer.

“However, most of the items fundamental this critical gap are non-recurring…I am persuaded that the organization has the required property and all the abilities to run a swift turnaround”, he additional.

The tenure of Atos’ earlier CEO, Elie Girard, was tainted by accounting faults and by a July 2021 gain warning. go through a lot more

The company’s tumble from grace saw Atos exit France’s blue-chip CAC 40 (.FCHI) fairness index and led to speculation about a takeover or the arrival of activist investors.

Atos claimed it now anticipated a 2.4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} decline in its 2021 comprehensive yr revenues, coming in at 10.8 billion euros ($12.24 billion) – below a earlier forecast for “stable” revenue.

Atos also now forecast an running margin at about 4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} for 2021 versus a goal of about 6{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} formerly, and its free funds stream focus on was now predicted at a detrimental figure of 420 million euros – down below a preceding forecast for constructive no cost cash flow.

Belmer, who formerly led French satellite business Eutelsat (ETL.PA), mentioned he will existing a new firm of Atos’ board of administrators at the end of following thirty day period, and a new tactic strategy in the 2nd quarter of this 12 months.

Atos, whose shares experienced also slumped by around 50{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} in 2021, will give its 2022 goals on Feb 28.

($1 = .8827 euros)

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Reporting by Benoit Van Overstraeten
Modifying by Christopher Cushing/Sudip Kar-Gupta

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