KPMG Reports Record Revenues of $11.7 Billion
KPMG International, the global professional services organization, has reported record revenues of $11.7 billion for the fiscal year ended Sept. 30, 2001. KPMG Chairman Stephen G. Butler announced that KPMG International recorded a robust growth rate of 9 percent in dollar denominated terms, compared with last year's total revenues of $10.7 billion.
KPMG International's prior year revenues of $13.5 billion were restated to reflect the spin-off of KPMG Consulting, Inc., which recorded $2.8 billion in fiscal 2000 revenues.
"We achieved gains in revenue and market share despite the persistent and challenging economic climate during the latter half of the fiscal year," Mr. Butler said. "Our growth underscores the fact that KPMG continues to lead the industry in winning market share from its competitors. It also highlights our success in serving market leading global companies, and particularly the complex needs faced by those organizations," Mr. Butler added.
Mr. Butler said that KPMG recorded strong growth across its functional businesses worldwide. "Assurance services grew 7 percent, to $5.8 billion worldwide; Tax and Legal services climbed 6 percent to $3.1 billion; Financial Advisory Services rose 15 percent this year to $1.2 billion; other services accounted for $100 million; and, Consulting services grew 19 percent to $1.5 billion," he said. The ongoing Consulting revenues consist primarily of the European Consulting businesses, which the respective European member firms intend to sell. KPMG Consulting, Inc. completed an Initial Public Offering on February 8, 2001. Following the public offering, KPMG Consulting, Inc. is an independent, unaffiliated company.
"We've made tremendous progress in managing our business on a regional basis," said Mr. Butler, who noted that KPMG recorded growth across all of its geographic regions. "The Europe, Middle East and Africa growth rate in local currencies was 18 percent. Also in local currencies, Asia Pacific had a 16 percent growth rate while the Americas grew 9 percent," he said. "In dollar denominated terms, the Europe, Middle East and Africa region reported a 9 percent growth rate to $6.3 billion; the Americas region advanced 8 percent, to $4.3 billion; and, Asia Pacific increased by 6 percent to $1.1 billion.
"Our global vision embraces three fundamental pillars of market leadership, becoming one global firm, and being the employer of choice. The individual components are tightly linked," Mr. Butler said. "Our global strategy emphasizes being recognized as a market leader by serving those companies that are themselves recognized market leaders.
"But we can't maintain market leadership - being the preeminent firm in our chosen businesses - without becoming a global organization, becoming the first professional services firm to organize and manage itself as a single, integrated entity globally," he said.
"Likewise, we can't be the employer of choice without delivering the benefits that accompany being a market leader and providing the opportunity for development and advancement that can only be found in a truly global organization.
"KPMG is well-positioned for the year ahead, and as a professional services organization, our people will again be a key to our success. Like market leaders everywhere, KPMG's employees are guided by a single set of core values that define the culture the firm seeks to maintain," Mr. Butler said. "We frequently receive acknowledgements for our achievements in creating a vibrant, respectful, stimulating work environment. In the U.S., KPMG was recently acknowledged by Working Mother magazine as one of the '100 Best Places to Work.'"