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Convergys Profits Drop 17 Percent
April 30, 2008
Convergys blamed restructuring costs and retirement benefit plans for the drop in net income in the first quarter, although revenues were down slightly.
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.
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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