FTI Consulting 1Q Profit Up On More Restructurings

WEST PALM BEACH, Fla. (AP) — Business advisory firm FTI Consulting Inc. said Wednesday that its first-quarter profit edged up 3 percent as the recession has prompted increased corporate restructurings.

Earnings rose to $31.7 million, or 60 cents per share, in the three months ended March 31 from $30.7 million, or 58 cents per share, a year ago.

Analysts surveyed by Thomson Reuters, whose estimates normally exclude one-time items, forecast net income of 52 cents per share.

While the economic downturn has been a drag on corporate financial results, the increased need for businesses to restructure has been a boon to FTI.

"Our growth in the quarter was led by continuing unprecedented levels of restructuring activity. The rapid rate of new case openings has continued unabated through the first quarter and up to the present, as we opened 214 new matters in the first quarter alone," President and Chief Executive Jack Dunn said in a statement.

Revenue grew to $347.8 million, up 13 percent from $307.1 million a year ago and above Wall Street's estimate of $341.2 million.

The corporate finance/restructuring division's revenue climbed to $127.5 million from $79.3 million. The forensic and litigation consulting unit's results also improved.

Shares of FTI Consulting gained $4.51, or 9 percent, to $54.48 in morning trading. The stock has traded in a 52-week range of $36.14 to $80.