Capgemini CEO: Sees Return To Revenue Growth In 4Q 2010

French IT Services group Capgemini SA (CAP.FR) is aiming to slow progressively next year the declining trend in its revenue, and expects to resume growth in the fourth quarter.

It is still to early to predict the revenue trend for next year, Chief Executive Paul Hermelin said on a conference call with reporters. But he said the Paris-based company starts the year in the midst of a negative trend that will lead to a 9% like-for-like revenue decline in the fourth quarter.

Capgemini is hoping to slow that rate of decline quarter by quarter, with revenue turning upward in the second half, though the likelihood is that the fourth quarter will show growth.

The improvements will be aided not only by more buoyant business, but also by portfolio shifts Capgemini has been undertaking to better position itself in markets, he said.

The company reported earlier Thursday that revenue fell around 7% in the third quarter to EUR1.95 billion, with a 9% drop in like-for-like sales.

Despite lowering revenue targets for the full year and the fourth quarter of 2009, the company maintained its outlook for 7% growth in its operating margin, helped by deep cost cutting.

Company Web site: www.capgemini.com

-By A.H. Mooradian, Dow Jones Newswires, [phone]; [e-mail]