DST Systems Profits Slide 24.2%

It chalks up the fall to a drop in revenue and higher effective income tax rate.
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Data processing firm

DST Systems

(DST)

said its fourth-quarter 2005 earnings fell 24.2% from the year-ago period, on account of a drop in revenue and higher effective income tax rate.

The Kansas City firm earned $50.7 million, or 68 cents a share, for the fourth quarter of 2005, compared with $66.9 million, or 79 cents a share, a year ago. Profits adjusted for items were $58.1 million, or 78 cents a share, for the fourth quarter 2005. Analysts were estimating 78 cents a share on that basis, according to Thomson First Call.

Fourth-quarter revenues fell 5.1% to $426.6 million as compared to $449.6 million a year ago. Analysts were estimating revenues of $412.03 million in the most recent quarter.

By segment, revenue from financial services was down 2.8% to $336.8 million for the fourth quarter 2005. Revenue from output solutions for the most recent quarter was up 6.4% to $275.2 million.

DST's common shares outstanding fell 12.3% to 74.6 million in the fourth quarter 2005 as compared to 85.1 million in fourth quarter 2004.

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