Paul Hermelin, CEO of Capgemini SA, is not quitting despite the company posting unexpected losses in its first half, and witnessing the departure of CFO William Bitan.
Hermelin told the Financial Times that he would be meeting investors in the next few days to update them on how he will be involved in turning around the company’s fortunes over the next six months.
Shares in Paris, France-based Capgemini gained some ground back on the news after falling 12% on Thursday when it reported an operating loss of 20 million euros ($24.4 million) for the six months to June 30, compared to a profit of 81 million euros ($98.8 million) in 2003, on revenue that fell two percent to 2.97 billion euros ($3.62 billion), although down seven percent at constant exchange rates. Analysts had expected Capgemini to report an operating profit of 15 million euros ($18.3 million).
Standard & Poor’s has since cut Capgemini’s credit rating to BBB minus, it lowest investment grade rating.
Despite this, Hermelin said Capgemini has seen a strong increase in its order book, and now expects double-digit revenue growth in the second half of the year. He intends to strengthen the management team of Capgemini over the next few months, despite speculation that the company could now become the target of a takeover attempt from Hewlett-Packard.