Earnings before charges fell by 21% for the fourth quarter at KPMG Consulting as the firm started to feel the economic pinch.
Operating earnings for the fourth quarter ending June 30, 2001, were $33.5 million, compared to $42.2 million reported in the prior quarter.
Revenue for the twelve months ending June 30, 2001, was $2.9 billion compared to $2.4 billion in the prior fiscal year, an increase of 21%. Revenue for the fourth quarter was $723 million, an increase of nearly 8% over the fourth quarter of the prior year.
Rand Blazer, chairman and CEO, said: "The economic climate has been challenging for many of our clients. Nonetheless, our results point to the strength, diversity, and flexibility of KPMG Consulting's business model, which has supported our ability to continue to provide value to our clients while achieving a total performance that meets the market's expectations."
"Although the fourth quarter was challenging, we are pleased with our financial results. We made difficult but prudent decisions when our workforce was not aligned with the market demand for our services. These actions resulted in a 300 basis point improvement in utilization in the quarter," commented Bob Lamb, vice president and CFO. "Our management team remains focused on delivering value to our shareholders."