GLOBAL – Watson Wyatt & Co. has reported a decline in income and revenues for the second quarter, but says it has improved its market share.
ncome from continuing operations fell to 10.8 million dollars from 12.1 million dollars a year before. Revenues fell to 170.4 million dollars from 174.6 million dollars.
It said the revenue fall was due to lower revenues in its technology solutions group – though this was “partially offset” by continued growth in its benefits group.
“Continued solid performance in our benefits group coupled with effective cost management drove our results this quarter,” said president and chief executive John Haley.
“We achieved a number of major client wins in the benefits group, and we are seeing some improvement in our technology solutions backlog.
“Overall, we are coming off the economic downturn in a good competitive position, having improved market share and the strength of our brand.”
The company made a 10 million-dollar contribution to its US qualified pension plan in the quarter.
The benefits group revenues, which accounted for 58% of total revenues, rose 3.5% to 98.4 million dollars. It added that client wins made earlier in the year continued to generate revenue growth in the second quarter.
International revenues, which account for 11% of total revenues, were 19.4 million dollars - flat compared to the prior year period, though they would have fallen six percent without “favourable exchange rates”.
Based on the outlook for the second half of the fiscal year, Watson said it now expects annual revenues “to be flat to down one percent” as compared to fiscal year 2003.
Watson Wyatt & Co. operates in the US and Watson Wyatt LLP operates in Europe.