'Sub-prime' not cause of lower Accenture earnings
No impact from sub-prime mortgage woes - it's the loss of a tax benefit
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,’
CEO
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