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Accenture Profit More Than Triples

October 9, 2003

NEW YORK (Dow Jones/AP) _ Accenture Ltd. said Thursday the latest quarter’s profit more than tripled versus last year, when the company recorded a big real-estate-consolidation charge and lost money on investments.

Also, revenue from outsourcing more than offset lower revenue from consulting, said the Bermuda-registered consulting firm.

Accenture reported net income of $120.5 million, or 25 cents a share, for the fiscal fourth quarter ended Aug. 31, matching a mean estimate from analysts surveyed by Thomson First Call.

In the fourth quarter last year, Accenture recorded net of $38.1 million, or 8 cents a share, which included a real-estate consolidation charge of $111 million, or 7 cents a share, and a loss on investments of $15 million, or a penny a share.

Total revenue rose 12 percent to $3.46 billion from $3.08 billion. Net revenue before reimbursements climbed 12 percent to $3.02 billion from $2.69 billion.

Outsourcing accounted for $1.04 billion of net revenue, 33 percent above last year’s, excluding the effects of foreign-exchange fluctuations. Consulting accounted for $1.87 billion of net revenue, a decrease of 8 percent in local-currency terms.

For the full fiscal year, net income more than doubled to $498.2 million, or $1.05 a share, from $244.9 million, or 56 cents a share, in fiscal 2002. In addition to the $111 million real-estate consolidation charge, Accenture’s results for the previous year included a loss on investments of $321 million, or 28 cents a share.

Total revenue for fiscal 2003 rose 2.2 percent to $13.4 billion from $13.11 billion a year earlier. Net revenue before reimbursements rose 2.1 percent to $11.82 billion from $11.57 billion.

For the first quarter of fiscal 2004, Accenture expects net revenue to be in line with Wall Street’s current estimate of $3.09 billion, and earnings in the range of 27 cents to 28 cents a share. The First Call projection is first-quarter earnings of 28 cents a share.

Shares of Accenture closed Thursday at $22.12, down $1.58, or 6.7 percent, on the New York Stock Exchange.

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