Accenture Announces Loss; Outlook is Positive
Accenture, the world's largest consulting firm, posted a third quarter loss, but maintained its outlook for a profit next year. The stock market responded with a strong increase of nearly 11%, boosting the cost of shares to $15.16.
Accenture's loss of $369.8 million was reportedly a result of stock awards presented to the company's staff and the large advertising campaign associated with the firm's name change. Accenture changed its name from Andersen Consulting late last year and launched a major name-recognition campaign early in 2001.
In spite of the loss for the quarter, Accenture indicated it has expanded its growth worldwide and that net revenue and operating income targets were met for the quarter.
The firm expects to recognize approximately $40 million in loss as a result of the September 11 terrorist attacks. Much of the loss related to the attacks is a result of employees not being able to get to their jobs when planes were diverted to Canada. Accenture lost 12 employees in the New York attacks.