Heidrick tumbles to first quarter loss
Despite the elimination of 600 people from the company's workforce since last year's first quarter, the figures reveal that making money from recruitment and consultancy continues to be a difficult process.
The company cut spending on salaries and employee benefits by 21%, to $68.9m. Confirmed executive searches fell 34% and fees per search declined 4%.
A geographic breakdown reveals gloom across the board, across regions as well as search practices. In Europe revenue fell 35% to $33.4m, while North America saw revenue down 34% to $49.8m.
But compared to 2001 fourth quarter figures, consolidated revenue rose about 4% in the first quarter this year. Adjusted loss per share improved nearly 50% as the company benefited from actions to reduce its cost structure since June 2001, a Heidrick statement said.
Piers Marmion, the chairman and CEO, said it was encouraging to see some improvement in business in the past three months. He added: "North America appears to have stabilised and there are noted pockets of new business activity in certain markets outside the US. But a general sense of caution continues to permeate the overall business environment."
Heidrick incurred $23.2m in special charges in the first quarter of 2002 as a result of downsizing and the consolidation and closing of offices. The company is predicting revenues for the second quarter this year to be between $85m-$95m.
Marmion said these figures reflected the firm's "view that the recovery in the business environment will be more gradual than many believed earlier this year."
