IT services company Atos Origin (ATO.FR) Wednesday said first-half earnings before interest and tax fell 3.1%, but confirmed it still aims to improve EBIT this year despite an expected decline in revenue as companies continue to keep a tight lid on spending.

EBIT for the first six months of the year fell to EUR118 million from EUR121.8 million last year. This was above an average EUR114 million forecast by six analysts polled by Dow Jones Newswires.

Revenue fell 2.3% to EUR2.59 billion from EUR2.65 billion last year and in line with analysts' expectations of EUR2.59 billion.

Consulting revenues continued to decline most sharply in the second quarter as companies rein in spending.

Last year's EBIT and revenue figures are at constant exchange rates and exclude Atos' Italian operations and Atos Euronext Market Solutions, or AEMS, which the company agreed to sell in 2007.

Still, the Paris-based company, which manages the IT systems for the Olympic Games, confirmed its full-year targets. It aims to improve EBIT by 50 to 100 basis points this year and expects 2009 revenue to fall about slightly.

The group also said it aims to accelerate margin improvement in the second half with the help of its new action plan Top Operational Performance, launched by new Chief Executive Thierry Breton, and still targets positive free cash flow this year.

Atos said its first-half EBIT margin was 4.6%.

Excluding the impact of the insolvency of German retailer Arcandor AG (ACAGF), which was one of Atos' clients, the group improved its operational profitability by 50 basis points in the first half, Atos said in a statement.

The company has undergone a series of restructuring in the past year and a half, accelerated by Breton when he took office in February.

Net profit dropped 89% to EUR14 million from EUR125 million last year in the first half, notably due to higher restructuring charges. Analysts had seen net profit at EUR15.4 million.

Net debt at June 30 stood at EUR328 million, compared to EUR304 million at the end of the last quarter.

Atos shares closed Tuesday at EUR28.23. The stock has gained about 58% since the start of the year as investors have regained confidence in the group's ability to improve margins after a year of radical management changes and restructuring.

Atos competes with European peers Capgemini (CAP.FR) and U.K.-based Logica PLC (LOG.LN). Capgemini reports first half results Thursday.

 
   Company Web site: www.atosorigin.com

-By Ruth Bender and Will Horobin, Dow Jones Newswires; +33 1 40 17 17 40; ruth.bender@dowjones.com