KPMG Consulting Profits Down Amid Lingering Slump

The firm, which went public last year after splitting from accounting firm KPMG LLP, posted earnings of $19.4 million, or 12 cents a share, in its fiscal second quarter, excluding one-time charges. That compares with profits of $20.9 million, or 13 cents a share, in the year-earlier period.

Analysts on average were expecting the firm to post profits of 12 cents a share, according to market research firm Thomson Financial/First Call.

Demand for technology and management consulting services has dropped sharply in recent times as the economic recession and the Sept. 11 attacks forced firms to delay or cutback on spending.

The firm's shares closed at $16.60 on the Nasdaq. Its shares have dropped 8 percent in 2001 since it went public in February, outperforming the Standard and Poor 500 Index, which fell about 14 percent in the same period.

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