Amsterdam, Netherlands-based Getronics was boosted by income of 261m euros ($294m) from unconsolidated investments and discontinued operations, which included the sale of its stake in Norwegian partner Merkantildata for $12.9m and its payroll services unit for $315m.
The proceeds of these sales are being used to pay off the company’s debt, which largely stems from its $1.4bn purchase of Wang Global in 1999. Getronics paid its two major bondholders some 325m euros ($366m) cash on June 30, and agreed an annuity scheme to repay the remaining 240m euros ($271m) owed through quarterly payments from March 2004 to September 2008. Getronics’ net debt was reduced by 61% in the first half to 125m euros ($141m), down from 319m euros ($360m) at the end of December 2002.
The company said that it had particularly struggled in Italy, where it made a loss in the first quarter of 2003. It has since replaced the management team of the Italian unit and reduced headcount in the country as part of a restructuring plan. Getronics also said that it was increasingly using offshore facilities in Mexico, Eastern Europe and the Far East to drive down the cost of delivering managed services projects.
Source: Computerwire
