CGG speeds up job and cost cuts as Q2 profit plunges
PARIS Aug 1 (Reuters) - French seismic surveyor CGG said it will step up plans to cut spending and jobs after delays in awarding contracts by clients and pressure on prices led to a plunge in second-quarter revenue and earnings.
The group said it would reduce its workforce by more than 10 percent, or over 1,000 jobs, and slim down its marine fleet to 13 vessels from 18 by the end of this year. It also pledged to lower industrial capital expenditure by 10 percent this year.
"Given the current weak market conditions characterized notably by the unpredictable capex spending of our clients, delays in awarding projects and pressure on prices, we anticipate 2014 to remain difficult," Chief Executive Jean-Georges Malcor said in a statement on Friday.
Second-quarter revenue dropped 33 percent to $689 million, while earnings before interest and tax (EBIT) fell 76 percent to $31 million, CGG said.
Malcor said, however, that he expected a sequential improvement in results in the second half, and confirmed a goal to improve the EBIT margin by 400 basis points in 2016. (Reporting by James Regan; Editing by Leigh Thomas)
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