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BearingPoint said it’s considering selling a stake in its Europe, Middle East and Africa business unit to employees.
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BearingPoint considers sale of EMEA business unit
BearingPoint said it’s mulling the sale of a “significant portion of its investment” in the EMEA business unit to employees of the unit, but it added that, at this time, it’s only exploring the option and no specific plans or timetable for a final decision have been approved by its board of directors.
“We believe that exploring this option for our EMEA business unit will enable us to accelerate our vision to become the next great consultancy and springboard the company's growth,” said Chief Executive Harry You.
EMEA contributed revenue of $662m in 2005, just under 20% of the company's overall sales, but the region contributed only 13% of gross profit due in part to severance costs in Germany, France and Spain.
BearingPoint also announced its preliminary results for the full year 2006, but the company is not yet up to date in its accounts and will miss the March 1 deadline for filing its 2006 financial statements with the Securities and Exchange Commission. It now expects to complete the report in June and to be back on track with its quarterly filings in the third quarter of 2007 after the design and implementation of a new accounting system is completed.
BearingPoint estimates 2006 revenue grew 2 percent to 5 percent to a range of $3.45 billion to $3.55 billion, slightly ahead of analysts’ expectations. However, the costs of auditing and rebuilding its systems, and the settlement of some problem contracts means that it will report a pretax loss of $144m to $214m.
BearingPoint filed its report for the year 2005 in November which revealed a loss of $721.6m, or $3.59 per share, on revenue of $3.39 billion.
CEO You also revealed that it had brought in Ernst & Young to audit its 2007 accounts, while PWC would simultaneously work on completing 2006.
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