Thursday, geophysical company Compagnie generale de geophysique-veritas or CGG Veritas (CGV) reported a loss in the second quarter, mainly hurt by restructuring costs.
For the second quarter, the company posted a net loss of $32 million or $0.24 per American Depository Share or ADS, compared to a net income of $81 million or $0.56 per ADS in the year-ago quarter. Excluding restructuring charges, net income plunged 72% to $23.2 million from $81 million in the prior year, while earnings per ADS fell to $0.13 from $0.56 in earlier year.
EBITDA, before restructuring, for the latest quarter dipped 32% to $231.7 million from $339.4 million in the previous year.
On average, three analysts polled by Thomson Reuters expected the company to report earnings of $0.25 per share for the quarter. Analysts' estimates typically exclude special items.
Three-month operating revenues declined 11% to $778.9 million from $874.1 million in the previous year. Analysts anticipated revenues of $785.90 million for the quarter.
Segment-wise, sercel division recorded revenues of $238.7 million, 15% lower than last year's $281.3 million. Services revenues dropped 9% to $557.6 million from $613.1 million on year.
Second-quarter gross profit, before restructuring, was $164.2 million, down from $244.9 million reported a year earlier. Before restructuring, operating income plummeted year-over-year to $67.1 million from $151.1 million.
For the first six months, CGG Veritas' net income dipped to $38 million or $0.22 per ADS from $177 million or $1.24 per ADS last year. Net income, before restructuring, plunged to $93.9 million or $0.59 per ADS from $176.9 million or $1.24 per ADS in the prior year. EBITDA for the six-month period fell 25% to $514 million from $682 million in the former year.
First-half operating revenues dipped to $1.63 billion from $1.75 billion in the same period a year earlier.
Looking ahead, chairman & chief executive officer, Robert Brunck, said, "For the longer term, we have programs in place, across the organization, that are expected to reduce our cost base by $350 million in 2011 and have a $250 million impact in 2010."
CGV closed Wednesday's session at $20.04, down $0.16 or 0.79%, on a volume of 104K shares.
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