Capgemini forecasts surprise revenue fall on automotive, aerospace downturn

French IT community Capgemini forecast a shock tumble in annual income on Friday, citing a downturn within the auto and aerospace sectors, sending its shares tumbling bigger than 9 per cent.

Shares of Capgemini fell 9.4 per cent by 0728 GMT to hit the underside of the CAC40 index, after the Paris-based entirely community acknowledged it now expects its natural gross sales to tumble between 0.5 per cent and 1.5 per cent in 2024, in contrast with the 0-3 per cent upward push beforehand forecast.

“The slope of restoration within the 2nd half could be tormented by the contemporary deterioration of the outlook within the auto and aerospace sectors and the slower restoration in monetary products and services,” CEO Aiman Ezzat acknowledged in a press unencumber.

Ezzat suggested analysts that offer chain challenges had slowed down the aerospace exchange, but illustrious that this is able to excellent fill an mark on non eternal enhance.

Capgemini reported a 3.7 per cent tumble in North The US income for the 2nd quarter, slower than the 7.1 per cent fall seen within the indispensable three months of 2024. For the indispensable half of the one year, North The US income was as soon as down 5.4 per cent.

Ezzat acknowledged North The US confirmed the strongest restoration between the indispensable and 2nd quarters.

The market was as soon as the 2nd excellent for the community, accounting for 28 per cent of its income within the indispensable half of the one year. It was as soon as a lag on Capgemini’s results final one year as successfully, amid a tech sector downturn.

The community’s total headcount stood at 336,900 on the pause of June, down 4 per cent from a one year earlier.

Capgemini has slowed hiring since 2023, ending the one year with 5 per cent fewer sources than it started it with, a first since 2009.

The community reported H1 income of 11.14 billion euros ($12.09 billion), down 2.5 per cent one year-on-one year on a reported basis.

The community confirmed its 2024 working margin and natural free money waft targets.

($1 = 0.9211 euros)