CGI increases 2006 quarterly net earnings after restructuring

CGI Group Inc. (CGI) reported 2006 Q3 net earnings from continuing operations, before restructuring costs, of $46.4 million, compared $34.8 million in the previous quarter.
Included in CGI’s 3Q results are pre-tax restructuring costs related to specific items of $15 million. Including these costs, CGI net earnings were $35.9 million, compared with $14.1 million in the previous quarter.
“In the third quarter, we successfully executed against our previously announced improvement plan,” CGI president and CEO Michael E. Roach said. “We significantly improved margins and earnings per share and we were able to maintain revenue, despite continuing currency pressures.”
CGI reported in a press release that revenue in 2006 3Q was lower compared with 2005 3Q “due to the negative impact of currency and a decrease in revenue from the company’s largest customer, BCE.”
The company said it earned several new contracts and renewals during the quarter totaling $787 million. Below are certain contracts awarded to CGI during 2006 3Q:
More than US$100 million in AMS Advantage(R) contracts with City of New York; Wake County, North Carolina as well as the city and county of Honolulu, Hawaii.
$130 million, IT outsourcing contract with Cirque du Soleil
US$45-75 million, BPS contract with Universal Insurance
$50 million, renewal with Caisse de dpt et placement du Qubec