Hewitt Associates’ consulting income falls 9.5%
GLOBAL – Hewitt Associates’ consulting segment income fell 9.5% in the fiscal second quarter on revenue that was broadly flat after currency and other effects.
Illinois-based Hewitt said consulting income fell to 36.2 million dollars (30 million euros) from 39.9 million dollars in the prior year period.
Net revenues at the arm rose 7.3% to 195.3 million dollars, but adjusted for acquisitions and currency effects, Hewitt said consulting revenues “were even with the year-ago quarter”.
It said: “A double-digit increase in health management consulting and a low-single- digit increase in retirement plan consulting was offset by a high-single-digit decline in all other consulting.” Consulting margin fell to 18.5% from 21.9%.
Overall Hewitt’s reported net income rose 29% to 30.4 million dollars while its total revenues were up 14% at 546.3 million dollars.
"Hewitt posted another quarter of strong top- and bottom-line growth, adding to our long track record of growth," said chairman and chief executive Dale Gifford.
"We remain confident we have the best and most comprehensive set of HR solutions in the marketplace, and our strong client retention and win rates reinforce our competitive positioning and prospects for continued growth.”
Hewitt expects 10%-11% net growth in revenues for the fiscal year.