ABM Industries Fiscal 2Q Profit Rises 15 Percent

NEW YORK (AP) — Shares of facility services contractor ABM Industries Inc. jumped in morning trading Friday after the company reported its profit grew 15 percent in the fiscal second quarter as it trimmed expenses.

The New York company said late Thursday its profit increased to $12.8 million, or 25 cents per share, from $11.1 million, or 22 cents per share, a year ago. ABM said its profit from continuing operations, excluding one-time items, rose to 32 cents per share from 27 cents per share. Revenue fell 6 percent, to $855.7 million from $906.3 million.

The company cut its total expenses 5 percent, to $833.1 million from $877.6 million. Operating, selling and amortization costs all decreased.

The year-ago quarter included a $4.4 million benefit from a reduction in self-insurance reserves over the previous years, as well as a $4 million goodwill impairment charge. ABM took a loss of $4.2 million from discontinued operations last year, compared with $300,000 in the most recent quarter.

The company also backed its 2009 guidance, calling for a profit from continuing operations of $1.10 to $1.20 per share, or an adjusted profit from continuing operations of $1.25 to $1.35 per share.

In morning trading, ABM shares climbed $1.59, or 9.1 percent, to $19.11.