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BearingPoint Posts Fall in Profit

The company cites a charge to cover workforce reductions.

BearingPoint

(BE) - Get Report

reported a fall in its third-quarter profit, due to a charge to cover workforce reductions.

In the quarter ended March 31, BearingPoint, formerly known as KPMG Consulting, earned $12.4 million, or 6 cents a share, including a $11.9 million charge from its job-cut program, compared with $23.7 million, or 15 cents a share, in the third quarter of 2002.

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Excluding the charge, the McLean, Va., company's operating earnings were $24.3 million, or 13 cents a share. Analysts expected 12 cents a share.

Revenue rose 41% to $821.3 million due to growth in the company's core business, as well as acquisitions and other transactions, the company said.

The company said it still expects fourth-quarter EPS to be 14 cents to 17 cents on revenue of $800 million to $860 million. Analysts expect the company to earn 15 cents a share in the quarter. BearingPoint earned 15 cents a share in the fourth quarter of 2002.

The company's shares were up 12% at $8.19 at midday Wednesday.