Bacon & Woodrow boosts Hewitt’s revenue
US – Hewitt Associates expects the acquisition of Bacon & Woodrow to fuel a more than 20% growth in its consulting revenues.
US-based Hewitt said it forecasts revenue growth in the 2003 fiscal year of more than 20% in its consulting business “due primarily to the Bacon & Woodrow acquisition”. Hewitt bought the UK consulting firm last year. It also predicted around 8-10% growth in outsourcing. Total net revenue was forecast to grow by 13-16%.
Hewitt reported that its third-quarter net revenues rose 15% to 494.9 million dollars (432 million euros) from 430.1 million dollars a year before. It said consulting revenues rose 25% to 190.8 million dollars from 153.0 million dollars – aided by the Bacon & Woodrow purchase. Consulting income fell to 36.4 million dollars from 51.9 million dollars a year before
“Increases in retirement and health benefit plan consulting were offset by decreased demand for more discretionary consulting services due to the soft economy,” it added.
"The earnings growth was primarily the result of the acquisition of Bacon & Woodrow and our careful efforts to manage compensation expenses and staffing levels," said chairman and chief executive Dale Gifford.
"Revenue growth was at the high end of our expectations for the quarter, driven primarily by solid growth in outsourcing," he added.