Thursday October 17
ADP Reports Record First Fiscal QuarterAutomatic Data Processing, Inc. achieved record revenues and earnings per share in its first quarter of fiscal 2003, Arthur F. Weinbach, chairman and chief executive officer, announced. This represents ADP's 165th consecutive quarter of record highs in both revenues and earnings per share since becoming a public company in 1961.
Revenues approximated $1.6 billion in the quarter ended September 30, 2002, up 2 percent over last year. Pretax earnings increased 6 percent and net earnings increased 7 percent. Diluted earnings per share, on fewer shares outstanding, increased 10 percent to $.34 from $.31 last year.
Commenting on the quarter, Mr. Weinbach said, "Revenue growth was in line with our expectations for the first quarter. Employer Services, Dealer Services and Claims Services grew 4 percent, 8 percent and 3 percent, respectively. Brokerage Services' revenue declined 2 percent. In Employer Services new business sales grew 4 percent, client retention improved slightly, and the number of employees on our clients' payrolls declined 2 percent in the quarter, a slightly lower decline than the full fiscal 2002 average... As expected, Brokerage Services also had a 16 percent decline in pretax earnings. Overall we see no indication of external economic improvement, although our business unit results, while mixed, are slightly ahead of our plans. Interest income is less than planned as interest rates are lower than originally anticipated.
"Our guidance for fiscal 2003 revenue and earnings per share growth in the mid-single digits remains unchanged. As we expected and previously stated, our first quarter growth rate was higher than our full year forecast, and our second quarter growth rate is expected to be lower (flat to low-single digit earnings per share growth). These contrasting results are primarily related to events in fiscal 2002 (such as the impact of September 11th), although we are expecting further weakness in our Brokerage Services back office trade processing business in the second quarter from further institutional trade compressions and previously anticipated client losses. We expect mid-single digit earnings per share growth in the second half of fiscal 2003 as our Employer Services business and interest rates will benefit from slightly easier comparisons to fiscal 2002 assuming the economy and interest rates do not deteriorate further," Weinbach concluded.
ADP, with $7 billion in revenues and over 500,000 clients, is one of the largest independent computing services firms in the world.
©2002 Collision Repair Industry INSIGHT