CDI Corp. has announced a drop of 5.6% in revenue for the quarter ended Sept. 30, ending the quarter at $281.9 million. The company reported net earnings from continuing operations of $8.1 million, up 1.3% from $8.0 generated in the prior-year quarter.
Third quarter 2008 net earnings include a $3.3 million reduction in income tax expense due to the recognition of foreign research and development credits, and $0.5 million in pre-tax costs related to the credit.
President and CEO Roger Ballou attributed the fall in revenue to the "effects of the Gulf Coast hurricanes of $4.2 million and an unfavorable foreign currency impact of $3.1 million, with the remainder primarily reflecting the weakening in North America and U.K. employment markets. The company also incurred $0.5 million in costs during the quarter to obtain a previously-announced major account expansion in our IT Solutions segment which should produce profitable revenue growth in later quarters."