IT and engineering services provider Assystem has revealed a collapse in profits for 2006 despite revenue increasing by 19%.
Net profit fell to 5.7m euros ($7.6m) from 26.5m euros ($35.3m) in 2005, while revenue was 642.1m euros ($854.1m) with organic growth of 12.6%. The Paris-based company blamed the difficult trading environment in the French automobile and aerospace industries for the poor results. Internationally, the company increased revenue 22% and operating profits by 27%.
The company said costs incurred to turn around its technology unit in France would adversely impact its results for the first half of 2007, but would provide benefits in the second half.