CDI Corp. has reported its financial results for the fourth quarter and full year ended December 31, 2008.
For the quarter ended December 31, 2008, the company reported a net loss from continuing operations of $3.2 million, compared to net earnings from continuing operations of $8.2 million, in the prior-year quarter. Included in the results are $4.8 million in previously-announced, event-driven pre-tax charges as well as a $0.5 million goodwill adjustment.
CDIs U.K.-based AndersElite revenue declined 42.7% (21.1% on a constant currency basis) versus the prior-year quarter driven by weakness in contract staffing and by a steep decline in permanent placement revenue in the U.K. construction marketplace. Anders reported an operating loss of $1.7 million, a reduction of $4.0 million compared to the year-ago quarter. This primarily reflected a decline in high-margin permanent placement revenue and reorganization charges of $0.2 million.
For the full year ended December 31, 2008, the company reported net earnings from continuing operations of $19.8 million, on revenue of $1.12 billion. Full year net earnings from continuing operations decreased 37.8% and full year revenue from continuing operations decreased 5.8% compared to 2007 full year results.
"As previously announced, the decline in the company's net earnings from continuing operations for the fourth quarter -- when adjusted for the event-driven charges and the goodwill adjustment -- was driven by two primary factors," said President & Chief Executive Officer, Roger H. Ballou. "First, we experienced a rapid deceleration in permanent placement revenue in our AndersElite segment and in our recruitment process outsourcing business within the Engineering Solutions segment. We also saw accelerated weakness in permanent placement demand in industries served by our MRI segment, resulting in reduced royalty payments. Second, we saw significant staffing reductions, as well as project delays and cancellations, at various chemical and industrial Engineering Solutions customers which were announced by our customers in late 2008.
"We remain committed to our long-term strategy to focus on delivering global engineering solutions while also providing professional staffing solutions and IT consulting and staffing services. However, given the unprecedented challenges created by the current recession and credit crisis, we have taken prompt and prudent steps to right-size the organization while preserving our ability to respond quickly to our customers' needs when capital spending and hiring rebound.
"We feel that our diversified business portfolio has provided some balance in this economic climate as customer spending in sectors such as U.S. government and defense, Canadian energy, and certain U.K. transportation infrastructure areas have added some stability to our revenue base."