Korn/Ferry 3Q earnings fall 11 percent

LOS ANGELES --Executive recruitment company Korn/Ferry International Inc. on Thursday said fiscal third-quarter profit slipped 11 percent from a year ago period boosted by a one-time gain, while sales climbed 27 percent on stronger fee revenue.

Net income fell to $14.7 million, or 33 cents per share, from $16.6 million, or 37 cents per share, in the prior-year quarter. Excluding a one-time gain on an investment last year, earnings in the third quarter of 2006 totaled 27 cents per share.

Revenue was $173.5 million in the three months ended Jan. 31, up 27 percent from $136.8 million a year ago, as fee revenue jumped.

All segments showed stronger fee revenue, Korn/Ferrry said, and the average fee billed per executive jumped 14 percent year over year. Foreign exchange rates also boosted fee revenue by about $5.6 million in the recent quarter.

Analysts polled by Thomson Financial expected earnings of 32 cents per share on sales of $163.3 million.

Shares of Korn/Ferry rose 37 cents in morning trading to $23.19 on the New York Stock Exchange.