WEST PALM BEACH, FL: FTI Consulting's strategic communications unit reported a revenue drop of 11.6% year-over-year to $45.8 million in the third quarter of 2012.
The group attributed the revenue decrease in strategic communications to fewer mergers and acquisitions and natural resource projects in the Asia-Pacific region, as well as lower project income in North America.
Last year, FTI reported 3% third-quarter growth in its strategic communications business, compared with Q3 2010.
In the first nine months of 2012, FTI's strategic communications unit reported revenue of $137 million, a drop of 9.4% compared with the first three quarters of 2011.
Overall, the holding company reported Q3 revenue of $386.1 million, a 6.7% decrease compared with the same quarter in 2011. Net income in the company decreased 22.8% to $22.7 million in Q3, year-over-year.
The holding company saw $46.6 million in operating income in the quarter, a drop of 21.6% from the previous year. In the first nine months of 2012, FTI's operating income was $114 million, a decrease of 16.7%, and its net income was $48.9 million, down 23.6% from 2011.
The company's strategic communications unit was its smallest business segment in terms of Q3 revenue, compared with corporate finance and restructuring ($110.2 million), forensic and litigation consulting ($83.4 million), economic consulting ($96.4 million), and technology ($50.3 million).
Jack Dunn, president and CEO of FTI said in an earnings statement that the results for the quarter were “in line” with expectations.
“Going forward, we will continue to invest capital in growth opportunities such as our industry initiatives and in geographic opportunities such as our recent acquisition of a restructuring practice in Australia,” he added, in the statement.
Over the summer, FTI cut 115 jobs, or 3% of its workforce, and consolidated leased office space. However, layoffs in the strategic communications division were minimal, the holding company told PRWeek at the time.
FTI does not break out organic revenue in its earnings statements. Organic growth represents change in revenue without taking into account the impact of acquisitions or disposals.
A representative from FTI could not be immediately reached for additional comment.