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Korn/Ferry Posts Loss as Revenue Falls

June 21, 2002|From Bloomberg News

Korn/Ferry International Inc., the world's largest executive search firm, Thursday reported a fiscal fourth-quarter loss as revenue plunged and said results in the first quarter might be worse than analysts expect.

The weakened economy in North America and Europe and recent corporate scandals hurt revenue in Korn/Ferry's executive and middle-management recruiting segments as clients put hiring decisions on hold, the company said.

The company posted a net loss of $13.3 million, or 35 cents a share, for the quarter ended April 30, contrasted with net income of $8 million, or 21 cents, a year ago.

Excluding one-time charges, Korn/Ferry's loss was 12 cents a share, a penny better than the 13-cent loss expected, compared with a loss of 7 cents a year ago.

Revenue dropped 38% to $90.1 million. Executive recruiting revenue dropped 35% to $81.1 million. Revenue at Futurestep, Korn/Ferry's middle-management segment, plunged 51% to $8.9 million.

For the first quarter, the company said per-share results will range from break-even to a loss of 6 cents. Analysts on average forecast a loss of 2 cents, according to Thomson First Call.

Shares of Los Angeles-based Korn/Ferry fell 13 cents to $9.02 on the New York Stock Exchange.

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