Crisis comms helps boost FD's earnings

WEST PALM BEACH, FL: FTI Consulting reported that revenue for FD, its strategic communications division, increased by 24.3% to $56.1 million for the third quarter ending September 30, compared to the like period in 2007. The company, however, noted a "temporary" slowdown during the financial system breakdown.

WEST PALM BEACH, FL: FTI Consulting reported that revenue for FD, its strategic communications division, increased by 24.3% to $56.1 million for the third quarter ending September 30, compared to the like period in 2007. The company, however, noted a "temporary" slowdown during the financial system breakdown.

Jack Dunn, president and CEO of FTI Consulting, said in a conference call that strategic communications was affected by the lack of M&A work and was hardest hit by the depreciation of the dollar.

However, the division's crisis communications work replaced the lost M&A work in the US and UK markets, he noted.

In the second quarter of 2008, FD had reported a 48% increase in revenues to $62.2 million.

Overall in Q3, FTI Consulting saw a 28.5% increase in revenue to $325.5 million, compared to $253.3 million in the same period in 2007.

Dunn said, in a statement: “While FTI generally profits from market change and volatility, the unprecedented volatility of the capital markets and the breakdown of confidence in the financial system caused a temporary but sharp slowdown … By mid-September, our business started to rebound as our professionals were called upon to help provide advice and direction out of this global financial crisis.”

Year-to-date FTI Consulting posted $970.3 million in revenue, compared to $720.8 million for the same period in 2007.

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