GLOBAL – Hewitt Associates’ consulting income slipped by 12% to $49m ((€38.8m) in the second quarter – due to higher staff pay.
“Consulting segment income decreased 12% in the second quarter, to $49.0m compared with $55.9m in the prior-year quarter,” the human resources company said. “Consulting segment margin was 23.5%, compared with 28.2% in the prior-year quarter.”
It said the decrease was “primarily due” to higher performance-based compensation versus the prior-year quarter of $9m and higher stock-based compensation expense of $5m.
“The margin impact of these factors was partially offset by increased revenues and lower costs resulting from a previous restructuring in the prior fiscal year,” Hewitt said. Consulting segment revenues rose 5% to $208m.
“Revenue growth was strong across all regions, driven primarily by continued demand for the company's actuarial and talent-related consulting services,” the Illinois-based firm said in its latest earnings report.
Overall, it posted a 5% increase in operating income to $51.2m with revenues own 3% at $676.2m.
Hewitt’s rival Mercer also reported earnings today.
Mercer’s parent Marsh & McLennan said Mercer's total revenues increased 8% to $1bn in the first quarter.
It said: “Mercer Human Resource Consulting reported $739m in revenues in the quarter, an increase of 6%, or 8% on an underlying basis, with double-digit growth in retirement, its largest business, and human capital.”
MMC’s Putnam asset management arm – rocked by the market timing scandal a few years ago – saw revenues fall 13% to $345m.
Its average assets under management fell to $190bn, from $204bn a year before.
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