Heidrick & Struggles International Inc. News Release (07/31/12)

Heidrick & Struggles International Inc. today announced financial results for its second quarter ended June 30. Net revenue of $116.1 million declined 18.7% year over year. Net income fell to $1.9 million, or 10 cents per share, for the April-June quarter, from $7.4 million, or 41 cents per share, a year earlier. The number of executive search confirmations declined 24%.

Net revenue in the Americas declined 14.9% year over year. Second quarter operating margin was 23.6% compared with 24.4% in the 2011 second quarter. Compared with the 2012 first quarter net revenue increased 10.8%. Operating income increased 24.2% sequentially, primarily reflecting the increase in net revenue.

“Although revenue improved compared to the first quarter, confirmation trends fell short of our expectations and second quarter results were disappointing,” says L. Kevin Kelly, chief executive officer at Heidrick & Struggles. “Search confirmations were adversely impacted by increasing uncertainty about the pace of global economic recovery, including the euro-zone financial crisis, as well as continued weakness in hiring trends and investment spending generally.”