Revenues tumble at KPMG Consulting
The worsening US economy, combined with the 11 September terrorist attacks, caused revenue to fall by more than 10% over the last quarter, KPMG Consulting said yesterday.
The company, which was spun off from KPMG in the US last February, reported income of $609m (Pounds 417m) in the last quarter, compared to $679m (Pounds 465m) for the same period last year.
This was well below earlier expectations – in its previous earnings report the company said it expected revenues to hit between $670m and $705m.
Earlier this month KPMG Consulting announced it would be cutting up to 400 jobs as a result of the economic slowdown.
Rand Blazer, chief executive, said: ‘Our performance in this quarter certainly was affected by world events and the economic environment.’
Revenue in its public services and communications business units continued to be strong but had been offset by falling revenue in its financial services and high technology units.