The Wall Street Journal-20080215-Capgemini- Second-Half Net Rose 23- On Regional- Business Mix

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Capgemini: Second-Half Net Rose 23% On Regional, Business Mix

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Capgemini of France said its second-half net profit rose 23% to 272 million euros ($396 million) from 222 million euros a year earlier. The information-technology services company's revenue rose 10% to 4.31 billion euros. Profit was boosted by its improved regional and business mix and its growing offshore operations, Chief Executive Paul Hermelin said in a conference call. Capgemini bought Kanbay International for $1.25 billion at the start of 2007 to expand its offshore capacity. The business is based in the U.S., but most of its employees work in India. The company said earnings before interest and taxes climbed 40% to 371 million euros for the half, and it is on track to meet its 2008 Ebit margin target of 8.5%. For the full year, organic revenue growth, which strips out acquisitions, asset sales and currency-exchange effects, was 9%.