Nordic IT services vendor TietoEnator has confirmed a poor performance in the third quarter, a week after issuing a profit warning and announced the departure of its CEO.
In the three months ended September 30, 2007, TietoEnator’s net profit fell 44% to 11m euros ($15.8m) on revenue that rose 10% to 404m euros ($573m).
The company gave further color on its bottom-line problems. It said it made an 8m euro ($11.5m) loss from loss-making projects, mainly in the banking and insurance sector, and that its operating profit was also hit by project overrun costs in the manufacturing, government, and retail industries.
TietoEnator also took restructuring costs of 4.7m euros ($6.7m) in the quarter as part of the Profit 2007 program it launched in February. The company admitted last week that it would fall below last year’s operating profit figure of 124m euros ($176m) in full-year 2007.