KPMG Consulting takes profits hit

Links: KPMG Consulting completes £469m deal

The fourth quarter results from 1 April to 30 June 2002 showed revenue of $582m substantially down on the $722m (£469m) recorded for the same period last year.

Profits (net income) were just $404,000 for the quarter, compared with the $22m recorded in 2001, while earnings per share were unchanged on the previous quarter at $0.15.

One reason for the loss was a $23.7m hit taken for investment losses and staff cuts. The financial reports show global staff numbers down from 10,017 to 9,328.

On the year, revenue fell from $2.85bn to $2.37bn, with net income tumbling from a profit of $34m in 2001 to a loss of $26m in 2002.

Earlier this year KPMG Consulting agreed to purchase a large share of Andersen Worldwide’s global consulting businesses.

In June the company snapped up its former audit parent company KPMG International’s German, Swiss and Austrian consulting divisions in a $685m (£469m) deal.

Shares in the company were last trading $10.25, marginally down on the day.

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