Hewitt reports net revenue up 8 percent

Hewitt Associates Inc., a global human resources services company, today reported positive results for its fourth quarter and fiscal year.

The Lincolshire-based company reported net revenues increased 8 percent in the fourth quarter. Operating income increased to $54.3 million, compared with an operating loss of $280.6 million in the prior-year quarter.

The company reported earnings increased to $31.6 million, or 32 cents per diluted share, compared with a net loss of $265.6 million, or a loss of $2.51 per diluted share in the prior-year quarter.

The company saw special charges in both quarters, including a pretax $34.4 million in real estate related charges in the last period and a $280 million charge a year ago to write down the the value of the compnay's business-process outsourcing segment.

"We are delighted with our fourth quarter performance, which represented a strong finish to a very good year for Hewitt," said Russ Fradin, chairman and chief executive officer. "During the quarter we saw healthy revenue momentum and exceeded our profit expectations while absorbing some key investment costs. I am pleased that we were able to do this in the face of such unprecedented economic turmoil."

"We expect a difficult environment in fiscal 2009, but we are fortunate to have taken actions in the past year to streamline our cost structure and obtain significant incremental financing to add to our already strong financial position. Our strategies and plans are intended to deliver solid revenue and profit growth in 2009 as we continue to meet our clients' needs during this period of significant change and disruption."

The board of directors has authorized the company to repurchase up to $300 million of its outstanding common shares over the next 24 months.

For more than 65 years, Hewitt has provided clients with human resources consulting and outsourcing services. Hewitt consults with more than 3,000 large and mid-size companies around the globe to develop and implement HR business strategies covering retirement, financial and health management; compensation and total rewards; and performance, talent and change management.