In the three months to September 30, 2003, New York-based SchlumbergerSema made an operating profit of $27 million compared to a loss of $3 million in the same quarter last year, on revenue that grew 6% to $792 million.
The increase in profitability was due in part to the company taking a $16 million restructuring charge in the third quarter of 2002, and at a revenue level, the company enjoyed a $50 million positive impact from the strengthening of European currencies against the dollar.
Schlumberger is in the process of selling the bulk of the SchlumbergerSema operation to France-based Atos Origin in a $1.47 billion deal, and said that the activities to be transferred made an operating profit of $17 million on revenue of $633 million during the quarter. The sale is expected to be completed by the end of this year.
SchlumbergerSema’s operations in the UK, Asia, Sweden and North America all benefited from this restructuring, and reported sequential revenue increases, but the company’s weak spot was again France, where revenue again fell on the back of declining utilization and daily fee rates.
SchlumbergerSema’s EMEA operations grew sales 6% to $616 million, but reported a 42% fall in operating profit to $21 million, with the company highlighting reduced business in its Italian and German telecoms business, and reduced revenue from its contract with the UK Metropolitan Police.
The company’s Americas division made an operating profit of $5 million compared to a loss of $2 million on revenue that fell 3% to $128 million this time last year. Its Asian unit improved its operating profit to $10 million from $1 million in the third quarter of 2002 on sales that fell 2% to $51 million.
During the third quarter, Schlumberger also announced the re-branding of its smart card and terminals business as Axalto, which it aims to float or divest during 2004. Schlumberger said that the operating profit from smart card sales grew 175% sequentially to $22 million during the quarter, on revenue that increased 25% sequentially to $202 million.
This article was based on material originally published by ComputerWire.
