CRA International reports drop in profits

CRA International Inc., a Boston-based business and economics consultant, said today that its first-quarter profit dropped 56 percent due to a revenue decline its international businesses, particularly in the Middle East, and higher expenses.

For the quarter ended Feb. 15, net income fell to $3.1 million, or 28 cents per share, from $7.1 million, or 56 cents per share in the prior year quarter.

Analysts polled by Thomson Financial expected earnings of 27 cents per share.

The company blamed the profit drop on a downturn in revenue in several of its international businesses, particularly its chemicals and petroleum division. Revenue from several large, long-standing Middle East projects declined more quickly than expected and follow-on contracts were not received during the quarter, CRA said.

Higher rent expenses and recruiting and professional fees led to lower profit as well.

Revenue rose 3 percent to $86.1 million from $83.3 million in the first quarter of 2007. Analysts predicted revenue of $86.6 million. (AP)