Bechtle AG (BC8G), a German IT service provider, reported Friday preliminary first-quarter results, with weak earnings, significantly below market expectations. Further, the company confirmed its fiscal 2025 forecast.
In the first quarter, earnings before tax fell to 55 million euros from last year's 82.0 million euros. Bechtle said it continued to face the impact of challenging economic conditions.
The year-on-year earnings decline is mainly attributable to increased personnel costs, as well as lower bonus payments from manufacturing partners.
Revenue declined by around 3 percent to approximately 1.46 billion euros.
Business volume was approximately 1.96 billion euros, roughly on par with the previous year, though slightly down on an organic basis.
Looking ahead, the company said that an uptick in demand in the second half-particularly from public-sector clients-should help to at least partially offset the declines from the first half of the year.
Initial signs of recovery were already visible in April.
Bechtle will publish its first quarter results on May 9.
On the XETRA in Germany, Bechtle shares were trading at 36.40 euros, down 0.22 percent.
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