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Earnings Analysis: 
Heidrick & Struggles Loss Widens
Author: George Shopov
123jump.com


Executive search company Heidrick & Struggles posted a wider fourth-quarter loss, citing restructuring and tax-related charges. Quarterly revenue improved nearly 5%, aided by favorable exchange rates.

 
Heidrick & Struggles International, Inc. (HSII: chart) announced before the bell Friday that its quarterly loss widened from a year ago, dragged down by restructuring and tax-related charges. The Chicago, Illinois-based executive search company posted a net loss of $72.3 million, or $3.95 a share, including special items, for its fiscal 2003 fourth quarter. This compares to a net loss of $20.0 million, or $1.10 a share, in the same period a year earlier. For the quarter ended December 31, revenue climbed 4.9% to $82 million, from $ 78.2 million a year ago, due primarily to favorable exchange rates. Heidrick & Struggles said it had an operating loss of $19.1 million, in the quarter, compared with an operating loss of $23.4 million last year. For the full year, the company reported a net loss of $80.7 million, or $4.43 per share, in contrast to a net loss of $40.2 million, or $2.22 per share, in fiscal 2002. Net revenue for the year dropped to $317.9 million, down 9% from $350.7 million, in 2002.

For the first quarter, Heidrick & Struggles said it expects earnings of 5 cents to 15 cents a share, on sales of $80 million to $85 million.

Company shares dipped 2.80% on Friday to $19.76. The stock inched down 3 cents to $19.73 in after-hours trading.

Gene Logic Inc. (GLGC: chart) of Gaithersburg, Maryland, said before market open Friday that it narrowed its fiscal 2003 fourth-quarter loss to $4.9 million, or 16 cents a share, from a loss of $5.2 million, or 19 cents a share, in the year-ago period. The genomics and bioinformatic company reported revenue of $19.7 million for the quarter ended December 31, up 33% from $14.8 million, last year. Gene Logic attributed the results to the acquisition of TherImmune Research Corp.

The stock gained 9 cents to close Friday at $5.34. Company shares slipped 1.12% to $5.28 in after-market trade.

Collins Industries, Inc. (COLL: chart) posted Friday a narrower quarterly loss, boosted by higher profits from terminal truck and road construction products and lower interest costs. The Hutchinson, Kansas-based maker of ambulances and specialty vehicles said it had a loss of $64,757, or a penny a share, in its fourth quarter, compared with a loss of $148,971, or 2 cents a share, in the comparable period a year ago. Total sales eased 5% to $41 million, on lower bus and ambulance sales.

Collins shares closed Friday down 3 cents, or 0.63%, at $4.75.

L'Oreal SA (LORLY: chart) reported Friday that its 2003 full-year earnings rose 16% to €1.50 billion ($1.90 billion), from €1.29 billion generated in fiscal 2002. The Clichy, France-based world’s No.1 cosmetics company said new products and the progress in the emerging markets drove the results. Quarterly revenue dipped 1.8% to €14.0 billion ($17.8 billion), from €14.3 billion in 2002, hurt by the weak dollar.

The stock shed 40 cents on Friday to $17.30.

Bridgestone Corporation (BRDCY: chart) announced Friday that its fiscal 2003 full-year earnings almost doubled from last year, boosted by rising sales in Europe. The Tokyo, Japan-based tire maker reported a net profit of 88.7 billion yen ($825 million) for the year ended December 31, compared with 45.3 billion yen, in the prior year. Sales improved 2% to 2.30 trillion yen ($21 billion), from 2.25 trillion yen in 2002.

Company shares fell 1.55% to close Friday at $28.55.

Bolstered by higher product sales, Savient Pharmaceuticals, Inc. (SVNT: chart) of East Brunswick, New Jersey, posted Friday fourth-quarter earnings of $4.07 million, or 7 cents a share, in contrast to a profit of $713,000, or 1 cent a share, in the year-earlier equivalent. The pharmaceutical company recorded revenue of $39.8 million in the fourth quarter, a 29% rise from $30.8 million, in the same quarter last year. Savient said it also benefited from the weak U.S. dollar.

The stock rose 4.85% to $4.32 at market close Friday.

Cobra Electronics Corporation (COBR: chart) said Friday that it earned $1.5 million, or 23 cents per share, in its fourth quarter, a 50% improvement from a net profit of $1.0 million, or 15 cents per share, in the 2002 corresponding period. The Chicago, Illinois-based maker of mobile communications products said results were helped by the company’s focus on costs management. Net sales were down 3% to $41.3 million, from $42.6 million.

Company shares plunged 6.81% on Friday to $8.90.

Aspen Insurance Holdings Limited (AHL: chart), the Bermuda-based insurer, reported Friday higher quarterly earnings, aided by strong premium income. The company turned in a net profit of $54.5 million, or 88 cents per share, in its fourth quarter, up from a net profit of $13.1 million, or 34 cents a share, in the fourth quarter of fiscal 2002. Aspen said net premium income jumped to $273.3 million, in the quarter, from $68.6 million a year ago.

The stock closed Friday at $26.00, down 37 cents, or 1.40%.

Metro One Telecommunications, Inc. (MTON: chart) said Friday it had a loss of $17.6 million, or 71 cents a share, in the fourth quarter of fiscal 2003, in contrast to a profit of $5.8 million, or 24 cents a share, last year. The provider of enhanced directory assistance for mobile phone operators added that quarterly revenue plunged to $45.8 million from $62.2 million, a year earlier. Beaverton, Oregon-based Metro One cited higher expenses and an impairment charge as main factors for the loss.

Company shares tumbled 5.26% on Friday to $2.34.

Stratasys, Inc. (SSYS: chart) of Eden Prairie, Minnesota, issued Friday its 2004 earnings guidance. The provider of rapid prototyping and 3D printing devices said it sees earnings in the range of 80 cents to 90 cents a share, for the year, on revenue between $61 million and $65 million. Analysts currently forecast a profit of 94 cents a share, on revenue of $64 million, for 2004.
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