Dutch telecommunications company Royal KPN NV has reported a 63% fall in fourth quarter earnings, mostly due to a large charge on its IT consulting business, Getronics, which it is now selling. Net profit in the quarter was €176 million from €475 million in the same period a year ago, including the €298 million charge.
The company said it will cut up to 2,500 jobs at Getronics and sell off parts of the business with 4,900 more. It will sell Getronics' European operations outside the Netherlands to Germany's Aurelius AG and its Latin American business to private equity firm OpenGate capital. KPN said the businesses disposed had combined sales of €665 million last year. KPN bought Getronics for €776 million in 2007.
Source: Canadian Business