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World – CDI Corp struggled in some markets during Q3

30 October 2013

The US-based engineering and technology service firm CDI Corp (CDI: NYSE) reported revenue of USD 277.9 million for the three months ending 30 September 2013, compared with USD 279.4 million last year. This equates to a year-on-year drop of -0.5%.

Gross profit for the period also reported a decline, falling by -3.7% to USD 52.7 million from USD 54.7 million, year-on-year. Net income for the period was USD 4.6 million, a drop of -14.9% compared with USD 5.4 million last year.

Paulett Eberhart, CDI Corp President and CEO, commented: “This quarter we achieved sequential improvement in quarterly revenue and operating profit margin. Although we are not converting wins into revenue at the pace we expected, we continue to see opportunities in our strategic engineering verticals. In addition, challenges remain in Hi-Tech staffing, MRI, and our government business.”

CDI Corp provides Global Engineering & Technology Solutions and Professional Services Staffing The company also provides staffing services through its franchised Management Recruiters International Inc. subsidiary.

CDI Corp has operations in the Americas, EMEA, and APAC but no indication of the company’s performance by geography was provided in the results announcement.

CDI Corp’s Management Recruiters International (MRI) segment reported third quarter revenue of USD 14.4 million, down by -17.5% compared with USD 17.5 million last year. Operating profit for MRI was USD 2.2 million, compared with USD 2.7 million last year.

The Professional Services Staffing (PSS) segment reported a +2% increase in Q3 2013 revenue to USD 182 million compared with USD 178.4 million a year ago. Revenue gains in the Oil, Gas, & Chemicals (OCG) segment were partially offset by declines in the Aerospace & Industrial Equipment (AIE) and Hi-Tech segments.    

The company’s Global Engineering & Technology Solutions (GETS) segment reported third quarter revenue of USD 81.5 million, a fall of -2.5% compared with USD 83.6 million last year. Increased revenue in the Oil, Gas, & Chemicals segment was offset by declines in Aerospace & Industrial Equipment (AIE).

Looking forward, the company anticipates achieving revenue for the fourth quarter of 2013 of between USD 263 million and USD 273 million, compared with annual revenue for 2012 of USD 270.5 million. In the fourth quarter, the company will receive a favourable settlement payment of USD 3.25 million as a result of a claim pursued by CDI Corp against a third party. This will be reflected in the Q4 2013 financial results.

Based on their current share price, the company has a market value of USD 320.2 million 

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