Heidrick & Struggles 1Q earnings fall 30 percent
CHICAGO—Heidrick & Struggles International Inc., an executive search and consulting firm, said Tuesday its first-quarter earnings fell 30 percent as employee expenses rose.
Net income for the quarter fell to $7.1 million, or 38 cents per share, from $10.1 million, or 53 cents per share, during the same period the previous year.
Analysts polled by Thomson Financial, on average, forecast earnings of 60 cents per share for the quarter on revenue of $155.9 million.
Total revenue increased 7 percent to $153.1 million from the year-ago period. Much of the growth was the result of the weak dollar.
Revenue from operations in the Americas fell 7 percent to $77.3 million, mostly due to declines in revenue among the company's financial services industry group. That sector has seen thousands of jobs lost due to deterioration in the mortgage and credit markets.
Revenue generated from European operations increased 24 percent to $52.9 million, while Asia Pacific revenue grew 34 percent to $22.9 million.
Total expenses at Heidrick & Struggles rose 12 percent to $149.1 million from $133.2 million during the year-ago period.
The bulk of expense growth was due to rising salaries and employee benefits. That measure rose to $110.6 million, a 13 percent increase from the $98.4 million spent during the first quarter last year.
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