ADP REPORTS THIRD QUARTER FISCAL 2009 RESULTS;
Third Quarter Revenues Decline 2%; EPS from Continuing Operations Increases 4%; CONFIRMS FISCAL 2009 REVENUE AND EPS GROWTH FORECASTS
ROSELAND, New Jersey (May 05, 2009) – Automatic Data Processing, Inc. (Nasdaq: ADP) reported a 2% revenue decline to $2.37 billion for the third fiscal quarter ended March 31, 2009, Gary C. Butler, president and chief executive officer, announced today. Revenue was negatively impacted by the severe economic conditions and over 3 percentage points of unfavorable foreign exchange rates during the quarter. Pretax earnings from continuing operations declined 1% and net earnings from continuing operations were essentially flat. Diluted earnings per share from continuing operations increased 4% to $0.80 from $0.77 a year ago on fewer shares outstanding. Fiscal year-to-date, ADP acquired 13.8 million shares of its stock for treasury at a cost of about $550 million. Cash and marketable securities at March 31, 2009 were $1.47 billion.
Commenting on the results, Mr. Butler said, “ADP’s third quarter results were negatively impacted by the recessionary economic environment and unfavorable foreign exchange rates. The selling environment continued to be soft in Employer Services and PEO Services across all market segments. As anticipated, our same-store-sales employment metric was also negative for the quarter which is indicative of the steep rise in U.S. unemployment. Dealer Services’ results reflect the continued difficult state of the automotive market. Notwithstanding these challenges, ADP continues to control expenses and appropriately align our expense base with our revenue growth.
Source: ADP
