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ADP says PEO revenue to grow more slowly

March 25, 2009

Automatic Data Processing Inc. (NASD: ADP) reported today its professional employer organization revenue will grow more slowly this fiscal year as a result of a decrease in the number of client employees.

ADP said it expects PEO revenue to grow by 12% to 13% in its fiscal year ending in June. The company estimated last month that PEO revenue would increase 14% to 15%.

The company had PEO revenue of $283.4 million for its fiscal second quarter ended Dec. 31.

Overall, ADP expects its total fiscal 2009 revenue to increase 1% to 2%, lower than its previous estimate of 2% to 3%.

"The economy has weakened since we last provided an update with our second quarter earnings announcement on Feb. 3, 2009," said President and CEO Gary Butler.

ADP provides payroll processing services, PEO services and computer services for motor vehicle dealers.