CDI Corp. News Release (10/30/12)
CDI Corp. has reported revenue of $279.4 million for the third quarter ended Sept. 30, up 2.5% compared with the prior-year third quarter. The company reported gross profit margin of 19.6% compared with 21.2% in the same period last year. Operating profit of $9.0 million is reported for the quarter, versus $4.4 million in the prior-year quarter, leading to an operating margin of 3.2% versus 1.6% in the year ago period. Net income of $5.3 million for the quarter compares with net income of $2.8 million in the prior-year quarter.
The company’s professional services staffing segment reported a 4.0% increase in third quarter revenue versus the prior-year third quarter. PSS revenue growth was driven by gains in all three strategic verticals: oil, gas, and chemicals; aerospace and industrial equipment; and high-tech, partially offset by lower revenues in the “other” vertical. Operating profit was $4.5 million during the third quarter of 2012, an increase of 9.7% versus the 2011 third quarter. Improvement in PSS operating profit was driven by lower operating expenses related to the 2011 restructuring as well as by additional expense reductions realized during the quarter.
For the fourth quarter ending Dec. 31, CDI anticipates a revenue increase in the range of 0% to 2% compared with the year-ago fourth quarter.