In the three months to March 31, New York-based SchlumbergerSema grew operating profit to $15m from $1m in the year-ago period, on sales that rose 12% to $793m. The company attributed the year-on-year revenue growth in part to strengthening of US currencies against the dollar, as well as capturing several new deals in the UK public sector.

SchlumbergerSema said that IT services spending remained depressed in France, one of its largest markets, and that spending by telecommunications operators in eastern Europe declined during the first quarter. However, the company’s sales to energy companies increased 15% year-on-year on the back of new multimillion-dollar contract wins with Pemex, Hafslund and HubCo.

Revenue from the EMEA region increased 14% to $605m, although operating profit fell 63% to $13m, which it blamed on overcapacity in the French market, where it said that daily billing rates had dropped by more than 15% during the quarter. SchlumbergerSema also highlighted lower activity and profitability in the telecoms sector in Germany and the Mediterranean.

SchlumbergerSema’s US operation reported a 7% decline in sales to $136m in North America during the quarter, where it said that clients continued to postpone spending decisions and revise IT budgets downwards. Cost-reduction programs over the last 12 months improved the region’s operating profit to $4m compared to a loss of $17m in the first quarter of 2002. SchlumbergerSema’s revenue from the Asia-Pacific region increased 4% to $53m, with operating profit up 64% at $11m, although it said that the Sars virus had started to delay projects due to contingency plans and travel restrictions.

Last December, SchlumbergerSema rolled its volume products business including its smart card activities into a separate operating division, and said it was considering disposing of the unit through a sale or a stock market flotation. During the first quarter, sales of volume products increased 1% to $202m, with 7% growth in sales of mobilecom cards offset by a drop in revenue from parking terminals.

Source: Computerwire