GLOBAL - Net revenues at Hewitt Associates declined by 1% to $701m in the first fiscal quarter of 2006, down from $709m in Q1 of fiscal 2005 (end December 2004).
Net income for Q1, which ran from 1 October 2005 to 31 December 2005, declined 7% to $31.5m, against $34m in the same period last year.
Consulting revenues increased 6% in Q1 fiscal 2006 to $195.7m, from $184.8m in the prior-year quarter. Meanwhile, outsourcing revenues declined 3% in the first quarter, to $512.1m, from $527.4m in the prior-year quarter.
The company said it expected net revenue in 2006 to be comparable to fiscal 2005's level, with core earnings of $145m to $150m and free cash flow of approximately $200m to $220m.
For the second quarter of fiscal 2006, Hewitt said it expected a low- to mid-single digit decline in total net revenue, and core earnings of about $28m to $31m.
Dale Gifford, chairman and chief executive officer, said: The performance of the outsourcing business met our expectations, and we are particularly pleased with the performance of the consulting business.
We've made progress toward structuring our business to achieve more profitable growth, and with continued focus on our cost structure and sharp execution, we feel that we are well-positioned to achieve the financial objectives that we set for the full fiscal year.
By Lisa Haines
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