Revenue growth shrinks at E&Y
Big Five firm Ernst & Young has announced a 7% increase in global revenues for 2001, a significant drop from the 14% growth recorded in last year.
Annual revenues for the year – ending 30 June 2001 – grew by $700m (Pounds 488m) to $9.85bn (Pounds 6.87bn), compared to last year’s revenues of $9.19bn (Pounds 6.41bn).
Its core assurance and advisory business recorded growth of just 5% on revenues in excess of $5.5bn, while tax and legal work grow by a 9% to $3.38bn.
The fastest growing service line was corporate finance – a ‘small’ part of E&Y’s global business operations. It expanded by 19% to $672m but accounts for less than 10% of global revenues.
Commenting on the results, E&Y chairman James Turley said the events of 11 September had had a ‘severe effect on many sectors of the global economy, particularly the financial services, airline and hospitality industries’.
Looking towards 2002, he said the firm was ‘well positioned to assist companies in improving their financial performance and managing through this economic downturn’.
Global CEO William Kimsey was also upbeat about the results saying significant growth had been achieved in a number of markets around the world, including Belgium, France, Germany, India and China.
‘These countries, among others, each posted a 2001 growth rate of 20 percent or more in local currency, demonstrating that our investment in globalisation is paying off.’
But in E&Y’s biggest business zone, the Americas – comprising the United States, Canada and Latin America – revenue growth was below 9%.
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E&Y global revenues rocket by 14%