‘Sub-prime’ not cause of lower Accenture earnings

Consulting giant Accenture has reported lower quarterly earnings than a year
ago, despite announcing record quarterly and full-year revenues.

At the same time the company said US sub-prime mortgage troubles among
lenders had had no impact on the company so far.

Despite not being impacted, the company told analysts at a conference call it
would ‘continue to monitor the situation’.

The company reported net income for the fourth quarter ending 31 August 2007
fell to $316.8m (£160m), from $346.4m for the corresponding period last year.

The cause of the fall in earnings was a rise in tax expenses to $253m from
$23.7m last year, when the company enjoyed as a tax benefit.

‘Demand for our services, particularly in consulting, remains robust,’
William Green
said in a statement.

Further reading:

Accenture profits rise on strong demand

Profile: David Thomlinson, MD of Accenture

Consultants dismiss Big Four challenge

Related reading