Convergys Profits Drop 17 Percent

Business process outsource firm Convergys Corp. (NYSE: CVG) reported yesterday first quarter net income of $35.9 million, down more than 17 percent from $43.6 million in the same period a year ago. Convergys stock was down less than 1 percent in mid morning trading to $15.60.

Revenues were flat at $716.4 million, down slightly from $719.9 million.

The Cincinnati-based call center operator said its operating profits were hurt by charges of $14.1 million for restructuring, and $7.1 million for costs related to a retirement benefit plans.

The Customer Management division revenues were $476.0 million, compared with $469.0 million. Operating income fell to $21.9 million from$56.3 million, partly due to a $5.4 restructuring charge and a $5 million expense due to the faltering U.S. dollar.

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