Third quarter earnings moved into reverse at Automatic Data Processing as the company posted a 14% decline in revenues from its Brokerage Services division.
ADP revenues approximated $1.9 billion in the quarter, a two per cent increase over last year, but pretax earnings declined seven per cent and net earnings fell by six per cent to $329.4 million from 352.3 million a year earlier.
Overall Brokerage Services' revenues dropped 14% as transaction levels in the financial sector remained weak.
Arthur Weinbach, chairman and chief executive officer, says: "If transaction volumes and retail mix continue at current levels, we will experience declining revenues in our back office trade processing business at least through the first half of fiscal 2004."
Separately, ADP/OMR broadened its product offering for fund of funds and private wealth management by creating a Web-based Events Manager system designed to automate the process of obtaining portfolio information from underlying fund managers. The new facility, launched today, aggregates data received from underlying fund managers and provides consolidated reporting that includes portfolio by sector and strategy.