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Korn/Ferry Profit Rises 28% on Strong Demand

September 08, 2006|From Reuters

Executive recruiter Korn/Ferry International reported higher quarterly profit on strong global demand for senior-level staff.

Net earnings rose 28% to $14.8 million, or 31 cents a share, in its fiscal first quarter, from $11.6 million, or 27 cents, a year earlier.

Analysts, on average, expected profit of 30 cents a share, according to Reuters Estimates.

Total sales were up 25% to $161 million, compared with Wall Street estimates of $149 million in revenue. Fee revenue was $153 million, up 25% from a year earlier.

The company, which also provides leadership development services, won more search engagements and charged higher fees, citing continued global economic expansion for the improved results. It also said clients were focusing as much on retention and development of their workforces as on recruitment.

Los Angeles-based Korn/Ferry said it expected second-quarter earnings of 28 cents to 32 cents a share, compared with Wall Street forecasts of 31 cents. It estimated second-quarter fee revenue of $147 million to $157 million.

Its shares gained 27 cents at $20.19.

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