Canada's CGI reports 25 percent jump in profit
(Reuters) - Information technology and outsourcing services provider CGI Group Inc (GIBa.TO: Quote) posted a 25 percent rise in quarterly profit, helped by lower expenses and higher earnings from the United States and the UK.
CGI's shares rose as much as 8 percent to a record high of C$50.65 on the Toronto Stock Exchange. U.S.-listed shares rose as much as 7.5 percent to $40.68.
The Canadian company said its backlog of signed orders rose to C$20.17 billion ($16.20 billion) at the end of December from C$19.25 billion a year earlier.
Earnings before finance costs, finance income and income tax expenses rose 41 percent to $95.1 million from the United States and 67 percent to $35.1 million from the UK.
CGI also authorized a buyback program of about 19.05 million shares, or up to 10 percent of its public float, over the year starting Feb. 11.
As at Jan. 23, no shares have been purchased under the current program which will end on Feb. 10, the company said.
Net income rose to C$236.3 million, or 74 Canadian cents per share, in the quarter ended Dec. 31, from C$189.8 million, or 60 Canadian cents per share, a year earlier.
Revenue fell nearly 4 percent to C$2.54 billion.
Operating expenses fell more than 7 percent to C$2.22 billion. Continued...